A decrease in which of the following will increase the current value of a stock according to the dividend growth model?

1 answer:

7 0

I had to look for the options and here is my answer:

According to the Dividend Growth Model, a decline in the DISCOUNT RATE will increase the stock's current value. The Dividend Growth Model, or also known as the Gordon Growth Model, is the basis in the calculation of the intrinsic value of a stock not including any conditions of the current market.

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