Which of the following statements is CORRECT? (select all that apply) For the discounted dividend model, you need to know the firm's dividend payments, the dividend growth rate, and the discount rate, or required rate of return. In addition, the model assumes that the firm will only be around for a finite period. The model cannot handle the assumption that there are an infinite number of dividend payments. The discount rate, or required rate of return, used in the discounted dividend model reduces the values of future dividend payments to calculate their present values-which are used in arriving at the value of the stock price today. The discounted dividend model calculates what the value of the stock price today should be, so we can then compare that value to the stock's current market price to determine whether to purchase, sell, or hold the stock. The discounted dividend model deals with a fundamental question in finance -the value or worth of a stock. To arrive at an estimate of the growth rate used in the discounted dividend model that determines how much dividends are expected to change each year, one looks at the company's history and likely future performance. The dividend yield, the capital gains yield, and the total return are three key components of the Discounted Dividend Model. The capital gains yield is calculated as the dollar amount of the year's dividend payments divided by the current stock price. The dividend yield is the percentage of how much of the stock's return is received as dividends. The capital gains yield is the annual percentage of a stock's change in price. The total return is equal to the dividend yield plus the capital gains yield