The basic underlying concepts in stock valuation are:

• The intrinsic value of a stock is the present value of all (future) expected dividends,
• Since future dividends are not known in advance, an assumption must be made about the rate at which dividends are expected to grow,
• If no track record of past dividend payments is available based on which an assumption about future growth rate can be reliably made, the corporate valuation model must be used instead.
• Identify which model would be most appropriate for valuing the stock of the three stocks below. In each case, explain why the model you have identified is most appropriate.

1. Tesla
2. Caterpillar
3. Odd Burger Corporation