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18 July, 16:32

Discuss similarities and differences between the discounted dividend and corporate valuation models

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  1. 18 July, 16:34
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    Dividend discount model (DDM) is used in valuing stocks of a company with basing on the value of the future net present dividends. It rests on the assumption that the stock's worth is equivalent to future dividends including discounted values of the present. Corporation valuation models on the other hand, is for loan qualifications, setting prices upon selling one's company.
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