How Is It Possible to Ignore Cash Dividends That Occur

question 87

Multiple Choice

How is it possible to ignore cash dividends that occur far into the future when using a dividend discount model? Those dividends:

• A) will be paid to a different investor.
• B) will not be paid by the firm.
• C) have an insignificant present value.
• D) ignore the tax consequences of future dividends.

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