A model valuing a share as the present value of all its future dividends is the dividend:
ADispersal model
BDeduction model
CDiscount model
DDoubling model
Answer & Solution
Correct answer: C. Discount model
1. Each future dividend is brought back to today's money.
2. Those present values are then added together.
3. That is the dividend discount model.
_Source: OpenStax Principles of Finance 2e, Chapter 11, Stocks and Stock Valuation._
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