The required rate of return on equity used as an input to the dividend discount model is influenced by each of the following factors EXCEPT: A. the expected inflation rate. B. the stock’s appropriate risk premium. C. the stock’s D. ividend payout ratio. ...
The required rate of return on equity used as an input to the dividend discount model is influenced by each of the following factors EXCEPT: A. the stock's appropriate risk premium. B. the stock's dividend payout ratio. C. the expected inflation rate. 相关知识点: 试题来源: 解析 B ...
The dividend discount model is the present value of the cash expected to be distributed to shareholders. Therefore an increase in the dividend payout ratio will increase the intrinsic value in a present value model.B is incorrect. The increase in earnings affects the multiplier models, but the ...
The required rate of return on equity used as an input to the dividend discount model is influenced by each of the following factors EXCEPT:A. the stock's appropriate risk premium.B. the stock's dividend payout ratio.C. the expected inflation rate. 正确答案:B 分享到: 答案解析: A stock...
The dividend discount model allows the investor to determine a reasonable price for a stock based on an estimate of the amount of cash it will return in current and future dividends. DDM is one way of estimating the intrinsic value of a stock. ...
The Dividend Discount Model Formula To calculate the fair value of this stock, we need to sum up all those discounted dividends. It can be done with fancy math, but after several mathematical cancellations, the accurate equation is extremely simple, and this is called the Gordon Growth Model:...
In practice, the use of the dividend discount model is refined from the method we presented in the textbook. Many analysts will estimate the dividend for the next five years and then estimate a perpetual growth rate at some point in the future,...
Using the dividend discount model, what is the cost of equity capital for Zeller Mining if the company will pay a dividend of C2.30 next year, has a payout ratio of 30 percent, a return on equity (ROE) of 15 percent, and a stock price of C45? A.9.61 percent B.10.50 percent C.15...
The required rate of return on equity used as an input to the dividend discount model is influenced by each of the following factors EXCEPT:() A. the expected inflation rate. B. the stock’s appropriate risk premium. C. the stock’s dividend payout ratio....
The third step is to calculate the fair value of the stock. So, Marion plugs in the numbers and finds thatP = D1 / (r – g) = $1.32 / (10% – 4%) = $1.32 / 6% = $22Therefore, the fair value of the stock based on the dividend discount model is $22. If the stock ...