Valuing a share as the present value of all its future dividends is the:
ADividend deposit method
BDividend delivery mandate
CDividend duplicate margin
DDividend discount model
Answer & Solution
Correct answer: D. Dividend discount model
1. Future payments are brought back to today.
2. Those payments are the dividends.
3. That is the dividend discount model.
_Source: OpenStax Principles of Finance, Chapter 11, Stocks and Stock Valuation._
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