What Variables Must Be Estimated to Use the Dividend Discount

question 45

Essay

What variables must be estimated to use the dividend discount model? The P/E model?

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Definitions:

Employees

Individuals who are hired by employers to perform specific duties in exchange for compensation, typically under an employment contract or agreement.

Fair Labor Standards Act

U.S. federal law that establishes minimum wage, overtime pay eligibility, recordkeeping, and child labor standards affecting employees in the private sector and in Federal, State, and local governments.

Time-and-a-Half Rate

A pay rate that is 1.5 times the employee's standard hourly rate, often applied to overtime work.

Hours Per Week

A measurement of the amount of time an individual spends on work or other scheduled activities over the course of a week.