Under the Dividend Discount Model (DDM), it is assumed that:

(A) A stock’s value equals the present value of all expected future dividends.
(B) The company will not distribute dividends in the future.
(C) A stock’s price is determined primarily by market speculation.
(D) Dividends have no relevance in determining a stock’s valuation.

The answer is: (A) A stock’s value equals the present value of all expected future dividends.
The Dividend Discount Model (DDM) is a fundamental valuation approach that states the intrinsic value of a stock equals the present value of all future dividends expected to be paid to shareholders.