Which of the Following Inputs Is Not Needed When Using

question 37

Multiple Choice

Which of the following inputs is not needed when using the Gordon growth model to determine the market value of a share of stock?

• A)the required rate of return for the stock
• B)the number of years the investor expects to own the stock
• C)the dollar amount of the dividend payment
• D)the expected growth rate of the dividends

---

Definitions:

Interest Rate

A lender's price to a borrower for the asset's usage, quantified as a percentage of the main sum.

Cash Flows

The movement of funds in and out of a business, determining its operating, investing, and financing activities' liquidity.

Lottery Prize

A financial reward won in a lottery, typically involving a large cash sum or valuable goods.

Monthly Payments

Regular payments made once a month, often used in the context of loans or leases.