Use the Following Two Statements to Answer This Question

question 28

Multiple Choice

Use the following two statements to answer this question:
I.The Dividend Discount Model (DDM) assumes that common shares are valued according to the present value of their expected future dividends.
II.The DDM argues that the selling price at any point (say, time n) will equal the present value of all the expected future dividends from period n to infinity.

• A)I is incorrect, II is correct.
• B)I is correct, II is incorrect.
• C)I and II are incorrect.
• D)I and II are correct.

---

Definitions:

Ideal Budget

A financial plan that optimally allocates income towards expenses, savings, and debt repayment, according to personal or family goals.

Types of Expenses

Various categories of costs incurred by individuals or organizations, including fixed, variable, operational, and capital expenses.

Income

Money received, especially on a regular basis, for work or through investments.

Blog Creation

The process of designing and publishing a blog, a digital platform for writing, sharing ideas, experiences, or information online.