Answer:
The answer is: D) Dividend growth model
Explanation:
The dividend growth model is a stock valuation model which calculates the fair market value of stock by assuming that the stock's dividends grow at a stable rate in perpetuity.
The dividend growth model determines if a stock is overpriced or underpriced, based on the assumption that the stock's expected dividends grow at a given value (g) forever, which is subtracted from the return rate (r).
Price = Dividend / ( r – g )
