Which one of the following is an underlying assumption of the dividend growth model?

- A stock's value changes in direct relation to the required return.

- A stock has the same value to every investor.

- The dividend growth rate is inversely related to a stock's market price.

- A stock's value is equal to the discounted present value of the future cash flows that it generates.

- Stocks that pay the same annual dividend have equal market values.

Jun 03, 2022

Which one of the following is an underlying assumption of the dividend growth model? - A stock's value changes in direct relation to the required return. - A stock has the same value to every...