When valuing a stock using the constant-growth model. d1 represents the:

When valuing a stock using the constant-growth model, D1 represents the:

expected difference in the stock price over the next year.

expected stock price in one year.

last annual dividend paid.

the next expected annual dividend.

discount rate.

Answer

Answer is The Next expected Annual dividend

When valuing a stock using the constant-growth model, D1 represents the:

expected difference in the stock price over the next year is The Next expected Annual dividend

constant-growth model

Price of Stock = D1 / (ke - g)   

Where D1 = Next Expected dividend = Estimated dividend for the next period, Also D1 =Last Dividend X Growth rate

Ke = required rate of return , g = growth rate

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