Dividend models suggest that ____________ determine the value of a financial asset to which the owner is entitled while holding the asset.

A) Current cash flows.
B) Past cash flows.
C) Future cash flows.
D) Past and present cash flows.
E) Past and future cash flows.

Dividend Models

Mathematical formulations that aim to estimate the real value of a company’s stock based on its expected dividend payments and growth.

Financial Asset

Any asset that is cash, an equity instrument of another entity, a contractual right to receive cash or another financial asset, or a contractual right to exchange financial instruments on potentially favorable terms.