Dividends That Are Expected to Be Paid Far into the Future

question 104

Multiple Choice

Dividends that are expected to be paid far into the future have:

• A)Great impact on current stock price, due to their expected size
• B)Equal impact on current stock price as near-term dividends
• C)Lesser impact on current stock price due to discounting
• D)No impact on current stock price because they are uncertain

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Definitions:

Debts

Money that is owed or due to another individual or entity.

Assets

Assets are resources owned by a business or individual that have economic value and can bring about future benefits, such as cash, real estate, and machinery.

Liabilities

Financial obligations or debts of a business that arise during the course of its operations, required to be settled over time.

Owner's Equity

The residual interest in the assets of an entity after deducting liabilities, representing the capital owned by the shareholders or owner.