Explain the Gordon Growth Model of Stock Pricing

question 43

Essay

Explain the Gordon growth model of stock pricing. Explain how changes in each component affect the current stock price. On what assumptions is the model based?

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Definitions:

Mobile Device

Electronic gadgets that are portable, often capable of connecting to the internet and running applications, such as smartphones and tablets.

Social Media

Platforms and websites that facilitate interactive and social communication among users, enabling sharing of content and ideas.

Stakeholders

Individuals or groups with an interest in or affected by the outcomes of a particular project, decision, or strategy.

Businesses

Organizations or enterprises engaged in commercial, industrial, or professional activities, aiming to earn profits.