The Underlying Assumption of the Dividend Growth Model Is That

Multiple Choice

The underlying assumption of the dividend growth model is that a stock is worth:

A) the same amount to every investor regardless of their desired rate of return.
B) the present value of the future income that the stock is expected to generate.
C) an amount computed as the next annual dividend divided by the market rate of return.
D) the same amount as any other stock that pays the same current dividend and has the same required rate of return.
E) an amount computed as the next annual dividend divided by the required rate of return.