Start learning →

In the dividend discount model, total return on a stock equals which sum?

ADividend income plus capital gain
BEarnings plus retained debt
CCapital gain minus interest paid
DDividend income minus capital gain
Answer & Solution
Correct answer: A. Dividend income plus capital gain
Holders earn cash dividends and price appreciation, and the two together form the full return on the share.
Practise this question with Quill — CA Final →

Keep practising Dividend Discount Model

Browse all Dividend Discount Model questions for CA Final, or explore more Strategicfinancialmanagement topics.

Start a Dividend Discount Model lesson →
Related questions