In the Gordon Model, the Value of a Common Stock

question 123

Multiple Choice

In the Gordon model, the value of a common stock is the ________.

• A) net value of all assets which are liquidated for their exact accounting value
• B) actual amount each common stockholder would expect to receive if the firm's assets are sold
• C) present value of a non-growing dividend stream
• D) present value of a constant growing dividend stream

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