Answer:
b. dividend growth
Explanation:
These are the options for the question
zero growth
dividend growth
capital pricing
earnings capitalization
discounted dividend
Dividend growth model helps to rate the stock price of a company with regard to net value of future dividend. dividend growth model helps to calculate fair value of equity. It should be noted that dividend growth model determines the present value of a stock based on its next annual dividend. It can be calculated with this formula below
P= D1/(r-g)
Where p= stock price
D= next year dividend value
r= constant cost of equity capital
g= growth
