The Discounted Dividends Valuation Model of Common Stock Assumes That

Multiple Choice

The discounted dividends valuation model of common stock assumes that dividends will grow at a constant rate forever.This method tells us that the (dividend next year) divided by the (required rate of return - growth rate) yields the

A) discounted dividend.
B) dividend growth rate.
C) value of the common stock.
D) value of the earnings.
E) value of the P/E ratio.