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Basic Question 0 of 28
According to the dividend discount model the value of a stock is the ______.
B. future value of an expected stream of future dividends.
C. sum of all future dividends.
A. present value of an expected stream of future dividends.
B. future value of an expected stream of future dividends.
C. sum of all future dividends.
User Contributed Comments 4
| User | Comment |
|---|---|
| chamad | I don't see the difference between A & C! can someone explain...thanks |
| VenkatB | The sum of all (Present Value of) future dividends C is missing the "present value" aspect |
| Oarona | well explained VenkatB |
| johntan1979 | Just recall the formula: Is V = sum of all future dividends, i.e. D1, D2, D3...? Nope, it's D/r-g |
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Learning Outcome Statements
compare, calculate, and interpret yield and yield spread measures for fixed-rate bonds
CFA® 2025 Level I Curriculum, Volume 4, Module 7.