Answer:
The dividend discount valuation model equates the current stock price to D) All future expected dividends discounted by the cost of equity capital.
Step-by-step explanation:
The dividend discount valuation model also known as DDM is used for stock valuation purposes. It follows that the stock price is based upon the sum of all the future expected dividends that the stock will pay discounted back to their present value. Thus, it values the stock based on the present value of all the future expected dividends.
As dividends are something that arise from shares or equity capital, the required rate of return on equity capital is taken as the discount rate to convert the future stocks to their present value today.