How Can Dividends Over the Entire Future Life of a Business

question 9

Multiple Choice

How can dividends over the entire future life of a business be relevant to a short term investor?

• A) The share price when the investor sells should reflect the present value of all future earnings streams of the company.
• B) The share price when the investor sells should reflect the present value of all future dividends of the company.
• C) The share price when the investor sells should reflect the present value of all future earnings per share of the company.
• D) The share price when the investor sells should reflect the after-tax present value of all future earnings of the company.
• E) The share price when the investor sells should reflect after-tax the present value of all future dividends of the company.

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