What Is the Name Given to the Model That Computes

question 87

Multiple Choice

What is the name given to the model that computes the present value of a stock by dividing next year's annual dividend amount by the difference between the discount rate and the rate of change in the annual dividend amount?

• A)Stock pricing model
• B)Equity pricing model
• C)Capital gain model
• D)Dividend growth model
• E)Present value model

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Definitions:

Guarantee Agreement

A legal contract in which one party agrees to be responsible for another's financial obligations or performance under a contract if the latter fails to meet their obligations.

Loan Agreement

A contract between a borrower and lender, specifying the loan's terms, repayment schedule, and interest rate.

Statute of Frauds

A legal concept that requires certain types of contracts to be in writing and signed by all parties involved to be enforceable.

General Manager

An executive responsible for overseeing the daily operations and overall management of a business or organization.