Problema stocks intrinsic value can be estimated by, Ask an Expert

Finance

Problem:

A stock's intrinsic value can be estimated by discounting expected dividends (or cash flows) to the present using the investor's require rate of return.

Required:

Question: Why are capital gains excluded from this model? Does the exclusion of capital gains limit its validity? How do money managers and investors address this issue?

Please describe in detail and also show all work.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91147480

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