Asked by Blade McKee on Apr 29, 2024
Verified
Who popularized the dividend discount model, which is sometimes referred to by his name?
A) Burton Malkiel
B) Frederick Macaulay
C) Harry Markowitz
D) Marshall Blume
E) Myron Gordon
Dividend Discount Model
A method of valuing a company's stock price by using predicted dividends and discounting them back to present value.
Myron Gordon
An economist best known for developing the Gordon Growth Model, which is used to determine the intrinsic value of a stock based on a future series of dividends that grow at a constant rate.
Burton Malkiel
An American economist and writer, most famous for his classic finance book "A Random Walk Down Wall Street."
- Familiarize oneself with the components and implementations of the Dividend Discount Model (DDM).
Verified Answer
EM
estrella maldonadoMay 06, 2024
Final Answer :
E
Explanation :
The dividend discount model, often associated with Myron Gordon, is known as the Gordon Growth Model. It is a method used to value a company's stock by assuming dividends grow at a constant rate in perpetuity.
Learning Objectives
- Familiarize oneself with the components and implementations of the Dividend Discount Model (DDM).