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According to the generalized dividend model, Group of answer choices the price of a stock is determined by the past performance of the business. the price of a stock is determined by dividends and the past performance of the business. the price of a stock is determined only by the present value of the expected stream of dividends. the price of a stock is determined only by the infinite sum of future dividends.

Question

According to the generalized dividend model, Group of answer choices

the price of a stock is determined by the past performance of the business.

the price of a stock is determined by dividends and the past performance of the business.

the price of a stock is determined only by the present value of the expected stream of dividends.

the price of a stock is determined only by the infinite sum of future dividends.

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Solution

The price of a stock is determined only by the present value of the expected stream of dividends.

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