Homework SourseUnder the constant dividend growth model of stock valuation
Under the constant dividend growth model of stock valuation, the expected value of a stock is a function of which of the following?
| A | The most recent dividend, the expected dividend growth rate, and the required rate of return on the stock |
Solution
Answer:
The most recent dividend, the expected dividend growth rate, and the required rate of return on the stock
stock price = D1/(ke-g)
| The most recent dividend, the expected dividend growth rate, and the required rate of return on the stock stock price = D1/(ke-g) |
