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In Chapter 8, the focus is on valuing stocks, and the main model we study is the dividend growth model in which the value of
In Chapter 8, the focus is on valuing stocks, and the main model we study is the dividend growth model in which the value of a stock is estimated as the present value of all future dividends the company is expected to pay out.
This raises the question, how should one value stocks of companies that do not pay dividends?
please write out answer with explanation for my understanding, thanks! I do upvote answers!
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