The Method of Valuing a Stock Based on the Present

question 32

Multiple Choice

The method of valuing a stock based on the present value of the future income derived from that stock is called:

• A)technical analysis.
• B)constant valuation.
• C)the basic stock valuation method.
• D)compound dividend analysis.
• E)the dividend discount model.

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Definitions:

Notebooks

Books with blank pages used for writing, drawing, or recording notes.

Influence

The capacity to have an effect on the character, development, or behavior of someone or something, or the effect itself.

Demand Curve

A visual chart that displays how the demand for a product varies with its price.

Determinants

Factors that cause changes in the behavior of an economic variable, influencing outcomes in economic models and systems.