One Stock Valuation Model Holds That the Value of a Share

question 56

Multiple Choice

One stock valuation model holds that the value of a share of stock is a function of its future dividends, and that the dividends will increase at an annual rate which will remain unchanged over time. This stock valuation model is known as the

• A) approximate yield model.
• B) holding period return model.
• C) dividend reinvestment model.
• D) constant growth dividend valuation model.

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Definitions:

Equal Freedom

The principle that all individuals should have the same rights and opportunities to pursue their freedoms, without discrimination or unjust restrictions.

Blacks

A term historically and currently used to refer to individuals of Sub-Saharan African descent.

National Life

The characteristics, values, and societal structures that define the existence and collective identity of a nation.