The Stock Valuation Model That Determines the Current Stock Price

question 178

Multiple Choice

The stock valuation model that determines the current stock price by dividing the next annual dividend amount by the excess of the discount rate less the dividend growth rate is called the _____ model.

• A) Zero growth.
• B) Dividend growth.
• C) Capital pricing.
• D) Earnings capitalization.
• E) Discounted dividend

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Definitions:

-oid

A suffix used in English to form adjectives or nouns indicating similarity or resemblance to something.

-al

a suffix denoting pertaining to or relating to something, often forming adjectives from nouns.

-ose

A suffix used in biochemistry to denote sugars or carbohydrates.

-osis

A suffix used in medical terminology to indicate a condition, disease, or increase.