Question

Gordon’s growth model, also called the constant growth model, assumes that the present value of a stock’s __________ determines the value of the stock.

Answer 1

dividends

Step-by-step explanation:

Gordon's growth dividend model, also called the constant-growth model, assumes that the present value of a stock's dividends determines the value of the stock. One of the benefits of using this model is that you do not have to forecast a selling price, or a repurchase price, at some point in the future.