The price of the share or the stock you have invested in depends largely on the dividends declared by the company. It’s not that the company pays off all the dividends to the investors. As a matter of fact, the company retains some part of it to re-invest in some more ventures and processes. This way it is able to divert funds towards initial investments in various projects. These projects determine the growth of the company and the returns they are going to add to the company’s profile. These investments generally have a consistently increasing growth rate which implies that the consecutive year’s dividends will also witness an increase proportional to the growth rate of the returns. Let us check out some of the models that helps in determining the stock price based on the underlying...