What Is the Model Called That Determines the Present Value

question 67

Multiple Choice

What is the model called that determines the present value of a stock based on its next annual dividend,the dividend growth rate,and the applicable discount rate?

• A)zero growth
• B)dividend growth
• C)capital pricing
• D)earnings capitalization
• E)discounted dividend

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Definitions:

Forested

Describes an area covered with forests or having a large amount of tree cover.

Percentage

A way of expressing a number as a fraction of 100, used to compare proportions.

Land

In addition to the part of the earth’s surface not covered by water, this term refers to any and all natural resources (“free gifts of nature”) that are used to produce goods and services. Thus, it includes the oceans, sunshine, coal deposits, forests, the electromagnetic spectrum, and fisheries. Note that land is one of the four economic resources.

User Costs

Expenses incurred by consumers for the use of a good, service, or asset, including maintenance, repair, and operational costs.