In the Generalized Dividend Model,a Future Sales Price Far in the Future

question 18

Multiple Choice

In the generalized dividend model,a future sales price far in the future does not affect the current stock price because

• A)the present value cannot be computed.
• B)the present value is almost zero.
• C)the sales price does not affect the current price.
• D)the stock may never be sold.

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Definitions:

You-attitude

A communication strategy focused on addressing the needs and interests of the audience, often used in business and persuasive writing to establish a positive connection.

You-attitude

A communication approach that focuses on the audience's perspective and needs.

Passive Verbs

A form of verb that indicates the subject of the sentence is the recipient of the action, often making the writing less direct.

Goodwill

The intangible value of a business that arises from brand reputation, customer relationships, intellectual property, and other non-physical assets.