FIN 571 Final Exam Guide (New, 2018)\n
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Question 1 The underlying assumption of the dividend growth model is that a stock is worth:
A. An amount computed as the next annual dividend divided by the required rate of return.
B. An amount computed as the next annual dividend divided by the market rate of return.
C. The same amount computed as any other stock that pays the same current dividend and has the same required rate of return.
D. The present value of the future income that the stock is expected to generate.
E. The same amount to every investor regardless of their desired rate of return.