Dividend valuation model DVM

A model that values a share of stock on the basis of the future dividend stream it is expected to produce its three versions are zero-growth, constant-growth, and variable-growth. In the valuation process, the intrinsic value of any investment equals the present value of the expected cash benefits. For common stock, this amounts to the cash dividends received each year plus the future sale price of the stock. One way to view the cash flow benefits from common stock is to assume that the...