Multiple Choice
The constant growth valuation model the Gordon model is based on the premise that the value of a share of common stock is
A) the sum of the dividends and expected capital appreciation.
B) determined based on an industry standard P/E multiple.
C) determined by using a measure of relative risk called beta.
D) equal to the present value of all expected future dividends.
Correct Answer:
Verified
Correct Answer:
Verified
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