alleryStart learning →The most common dividend discount model, using next year's dividend, required return and growth, is the:
AGordon gearing model
BGordon grading model
CGordon grouping model
DGordon growth model
Answer & Solution
Correct answer: D. Gordon growth model
1. It needs only three inputs to give a price.
2. Growth is assumed constant forever.
3. That is the Gordon growth model.
_Source: OpenStax Principles of Finance 2e, Chapter 11, Stocks and Stock Valuation._
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