Asked by
TaNia Alexis
on Dec 02, 2024Verified
The constant growth model is also known as the:
A) Gordon model.
B) next dividend model.
C) normal growth model.
D) both a and c above.
E) All of the above
Constant Growth Model
A dividend discount model that assumes dividends will increase at a constant growth rate indefinitely, useful for valuing stocks.
Gordon Model
A dividend discount model that values a stock by considering future dividends that grow at a constant rate, also known as the Gordon Growth Model.
- Understand the principles of the constant growth model in valuing stocks.
Verified Answer
HS
Learning Objectives
- Understand the principles of the constant growth model in valuing stocks.