Underlying assumption of the dividend growth model

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Which of the following is an underlying assumption of the dividend growth model (one answer only)?

1=A stocks value changes in direct relation to the required return on the stock.

2=A stock has the same value to every investor.

3= Stocks that pay the same dividend have equal market values.

4= A stocks value is equal to the discounted present value of the future cash flows it generates.

Reference no: EM13804410

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