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TaNia Alexis
on Dec 02, 2024

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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.
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HS
Harnoor SinghDec 08, 2024
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