Finance School of management The discounted dividend model a Discount-dividend model(DDM)is defined as any model that computes the value of a share of stock as the present value of its expected future cash dividends a The risk-adjusted discount rate or market capitalization rate is the expected rate of return that investors require to be willing to invest in the stock uesTc7 Finance School of Management The Discounted Dividend Model ❑ Discount-dividend model (DDM) is defined as any model that computes the value of a share of stock as the present value of its expected future cash dividends. ❑ The risk-adjusted discount rate or market capitalization rate is the expected rate of return that investors require to be willing to invest in the stock