Dividend Discount Model (DDM): P₀ = D₁ / (r − g) is known as:
ABlack-Scholes
BGordon Growth ModelCORRECT
CCAPM
DFama-French
CFACorporate Finance
AI
Toaster Teacher
Why the answer is B, and why the others tempt you.
Gordon Growth Model assumes constant dividend growth g indefinitely. Requires r > g.
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