11. Dividend Discount Model. Trasco Filie? LOT-2) .. Investtos will invest in a stock only if it gives a lugher return that they could get eisewhere. Therefore, of a stock is fairty porced, st expected return wil he greaser than the ocat e szyty A, sonk that is expected to pay a level dividend in perpetony has a value of P = DIV dr. Any premysay that mas frenvest zu grow it earnings will have a greater vaitie. The dividend discouen meidel in stl logically correct ever for socks that do not curemly PR divadend