Question 1

1pts

The Dividend Discount Model is widely used to determine the fundamental/theoretical/intrinsic price of a common stock (hint: this is true), and it has several names, including which of the following:

All of those listed below

DDM, DGM

Gordon's Model

NPV technique for Valuing Uneven Future Cash Flows

DCF approach for Discounting Future Cash Flows

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Question 2

1pts

The Dividend Discount Model is widely used to determine the fundamental/theoretical/intrinsic price of a common stock (hint: this is true), and one reason is that most common stocks pay a dividend.

True

False

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Question 3

1pts

Most investors in common stock expect the capital gains yield to be larger than the dividend yield.

True

False

Not enough information to determine