The Stock Valuation Model That Determines the Current Stock Price

question 69

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) differential growth

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Definitions:

Conditioned Response

A learned response to a previously neutral stimulus that has been repeatedly presented along with an unconditioned stimulus.

Unconditioned Stimulus

A stimulus that automatically triggers a response without any need for prior learning.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with an unconditioned stimulus, eventually triggers a conditioned response.

Unconditioned Reinforcer

A stimulus that naturally and automatically triggers a response without any need for learning, such as food for a hungry animal.