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Valuation Techniques for Common Stocks by Ng Chung Huat is a document available to read on EtoBox.

1) Dividend discount models value stocks based on the present value of expected future dividend payments. 2) The zero-growth model assumes dividends will remain at a fixed dollar amount each period into perpetuity. 3) Under this model, the intrinsic value of a stock is equal to the current annual dividend payment divided by the difference between the discount rate and the growth rate, since the growth rate is assumed to be zero.

Author

Ng Chung Huat

Language

EN