Valuing Stocks Using the Dividend Discount Model

Valuing Stocks Using the Dividend Discount Model

Prev Question Next Question

Question

The ________ approach derives specific estimates for the earnings multiplier based on a range of estimates for the dividend payout, required rate of return and dividend growth rate.

Answers

Explanations

Click on the arrows to vote for the correct answer

A. B. C. D.

C

There are two ways to estimate the earnings multiplier: (1) Direction of change approach and (2) Specific estimate approach. The first focuses on change and change direction, while the other focuses on scenario-based estimates.

Prev Question Next Question