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Three models of stock valuation

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Compare and contrast three models of stock valuation. What are the concepts behind each model?

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Solution Summary

The answer briefly describes (in 200 words) the three stock valuation models.

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The following are the three models of stock valuation:

1. Dividend Discount Model: This model takes the present value of future dividends. The major concept behind this model is that the dividends represents actual cash flows to investors and so are the true representation of how much a ...

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