Quiz Ch 07 – Valuing Stock with Dividend Discount Model
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
What happens to the present value of future dividends when employing the dividend discount model to value stock?
What happens to the present value of future dividends when employing the dividend discount model to value stock?
Compute the implied return on a common stock issue given a dividend, the issue price of each share, and an annual dividend growth rate.
Your numbers will vary.