Dividend discount models give estimates of the intrinsic value of a stock. If price does not equal
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Dividend discount models give estimates of the intrinsic value of a stock. If price does not equal intrinsic value, the rate of return will differ from the equilibrium return based on the stock’s risk. The forecasted return will depend on the rate at which the stock price is predicted to revert to its intrinsic value. P-69
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ISE Investments
ISBN: 9781266085963
13th International Edition
Authors: Zvi Bodie, Alex Kane, Alan Marcus
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