In the Gordon Model,the Value of the Common Stock Is

question 62

Multiple Choice

In the Gordon model,the value of the common stock is the:

• A) Net value of all assets which are liquidated for their exact accounting value.
• B) Actual amount each common stockholder would expect to receive should the firm's assets be liquidated at fair market value.
• C) Present value of a non-growing dividend stream.
• D) Present value of a constant, growing dividend stream.

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