The constant-growth valuation model is based on the premise

Reference no: EM131031446

1. The constant-growth valuation model is based on the premise that the value of a share of common stock is________.

a. equal to the present value of all expected future dividends.
b. determined based on an industry standard P/E multiple.
c. the sum of the dividends and expected capital appreciation.
d. determined by using a measure of relative risk called correlation coefficient.

Reference no: EM131031446

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