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How Can an Analyst Be Credible in Stating That the Value

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Essay

How can an analyst be credible in stating that the value of a stock is equal to the discounted value of all future dividends when a company may pay dividends indefinitely and it is virtually impossible to predict dividends beyond some reasonable horizon?


Definitions:

Star Athletes

Highly talented and popular sports persons who significantly influence their teams and often have a large fanbase.

Decision Maker

An individual or group responsible for making choices after considering the consequences of various actions.

Irrational

Behavior or thoughts not based on logical reasoning, clear thinking, or aligned with factual evidence.

Economic Models

Simplified frameworks used to illustrate economic processes or theories through mathematical equations or diagrams.

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