It Is Possible to Ignore Cash Dividends That Occur Far

question 107

Multiple Choice

It is possible to ignore cash dividends that occur far into the future when using a dividend discount model because those dividends:

• A) will most likely be paid to a different investor.
• B) will most likely not be paid.
• C) have an insignificant present value.
• D)have a minimal, if any, potential rate of growth.

---

Definitions:

Colostomy

A surgical procedure that creates an opening for the colon through the abdomen to allow bodily waste to exit through a stoma.

Serous Fluid

A clear, yellowish fluid that fills the space between the lining of the abdomen and abdominal organs, acting as a lubricant.

Peritoneal Cavity

A potential space between the parietal peritoneum (lining the abdominal wall) and the visceral peritoneum (covering the abdominal organs).

Cuspid Teeth

Pointed teeth located between the incisors and premolars, involved in tearing food.