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The following function is intended to estimate the price of a stock using the Gordon Growth Model based on the current dividend DO. Identify
The following function is intended to estimate the price of a stock using the Gordon Growth Model based on the current dividend DO. Identify the correct interpretation of the expression DO*(1+g) in the context of the stock_price_gordon function: def stock_price_gordon (DO, k, g): return DO * (1 + g) / (k - g) It adds the growth rate g to the current dividend DO as a simple sum. It calculates next year's expected dividend based on the current dividend DO and the growth rate g. It represents the compounded value of the current dividend DO over one period at the growth rate g. It discounts the current dividend DO by the growth rate g for one period
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