When valuing a stock using the constant-growth model,
*D _{1}* 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 / (k

_{e}– g) Where D1 = Next Expected dividend = Estimated dividend for the next period, Also D1 =Last Dividend X Growth rate

K_{e} = required rate of return , g = growth rate