What is the model called that determines the market value of a stock based on its next annual dividend, the dividend growth rate, and the applicable discount rate? Maximal-growth model Constant-growth model Capital pricing model Realized-earnings model Realized-growth model

Constant growth model

Explanation:

The constant growth model, is also referred to as the Gordon Growth Model, and it is used to know the value of a stock.

The assumption with regards toa constant growth model is that the dividends of a company's will increase at a constant growth rate.

The constant growth model determines the market value of a stock based on its next annual dividend, the dividend growth rate, and the applicable discount rate.

you have to put the parentheses like this:

in fact, you have to perform the operation inside parentheses first, and then proceed in order: