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The underlying assumption of the dividend discount model is that a stock is worth: A. the present value of the future dividends the company pays.
The underlying assumption of the dividend discount model is that a stock is worth:
A. the present value of the future dividends the company pays.
B. an amount computed as the next annual dividend divided by the required rate of return.
C. the same amount as any other stock that pays the same current dividend and has the same required rate of return.
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