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    Gordon model

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    Research an equation/formula that you use, rely on, or hear about in your everyday world (i.e., weather forecast, stock market predictions). Describe common uses of the formula or equation that you are exposed to. Are these always right? Why or why not?

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    The response addresses the queries posted in 453 words with references.

    //The Gordon model is the model that is used for making the predictions related to the stock market. Before starting a paper like this, it is important to throw light on the concept of this model and it also helps out in gaining the importance of the model as it is employed for the stock market predictions.//

    The formula or the equation that is used at the time of the stock market predictions is

    (D+ (1+g))/ k-g. The equation is useful at times when there is a need for predicting the nature of the stock market. The Gordon growth model is a variant of the discounted cash flow model, a method for valuing the stock or the business. The model is named after Myron J. Gordon, the person who was responsible for giving the formula (Gordon Model, 2008).

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    Solution Summary

    The response addresses the queries posted in 453 words with references.