According to the Dividend Discount Model, the Current Value of a Stock

question 117

Multiple Choice

According to the dividend discount model, the current value of a stock is equal to the:

• A)present value of all expected future dividends.
• B)sum of all future expected dividends.
• C)next expected dividend, discounted to the present.
• D)discounted value of all dividends growing at a constant rate.

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