Welcome to Westonci.ca, where your questions are met with accurate answers from a community of experts and enthusiasts. Get precise and detailed answers to your questions from a knowledgeable community of experts on our Q&A platform. Get detailed and accurate answers to your questions from a dedicated community of experts on our Q&A platform.
Sagot :
To apply the dividend discount model to a particular stock, you need to estimate the Sum of Present Value of Dividends and present Value of Stock Sale Price. This dividend discount model or DDM model price is the stock's intrinsic value.
The dividend discount model is a quantitative method used for predicting the price of a company's stock based on the theory that its present-day price is worth the sum of all of its future dividend payments when discounted back to their present value.
If the value obtained from the dividend discount model is higher than the current trading price of shares, then the stock is undervalued and qualifies for a buy, and vice versa.
To learn more about dividend discount model here
https://brainly.com/question/23040788
#SPJ4
Thank you for trusting us with your questions. We're here to help you find accurate answers quickly and efficiently. Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Thank you for visiting Westonci.ca, your go-to source for reliable answers. Come back soon for more expert insights.