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The Dividend Discount Model (or Gordon Model) of Stock Valuation (First define the concept of common stock and briefly distinguish between a primary market transaction
The Dividend Discount Model (or Gordon Model) of Stock Valuation (First define the concept of common stock and briefly distinguish between a primary market transaction versus a secondary market transaction. Next, define the concept of an initial public offering (IPO) and also explain why the pricing of an IPO is difficult. Finally, define the concept of the dividend discount (or Gordon) model for stock valuation and distinguish between a zero growth stock versus a constant growth stock).
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