The Dividend-Discount Model of Stock Valuation

question 42

Multiple Choice

The dividend-discount model of stock valuation:

• A) is an application of the net present value formula.
• B) takes the net present value of expected dividends and add it to the future sale price of the stock.
• C) takes the net present value of the expected future price of the stock and adds the annual dividend.
• D) takes the annual dividend, adds it to the expected future selling price and divides by the number of years to get the current price.

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Definitions:

Marketing Mix

A foundation model in marketing that manages a set of actions, or tactics, to promote a brand or product, typically consisting of the four Ps: Product, Price, Place, and Promotion.

Chobani

A brand and company known for producing Greek yogurt and other yogurt-based products, characterized by its natural ingredients and health-focused offerings.

Marketing Utility

The added value or benefit that a company provides to its products or services to satisfy customer needs and wants.

Utilities

Essential services provided to the public, including water, electricity, natural gas, and telecommunications.