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Digging Into the Dividend Discount Model
The dividend discount model (DDM) is one of the basic applications of financial theory. The theory is easy to grasp: A stock is worth its price if that price is less than the net present value of its ...
Investors buy stocks to participate in the growth of a company. Many stocks reward investors with dividend payments, but how do you know whether you’re paying more for a stock than what it is worth?
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