When Valuing Stock with the Dividend Discount Model,the Present Value

question 63

Multiple Choice

When valuing stock with the dividend discount model,the present value of future dividends will:

• A) change depending on the time horizon selected.
• B) remain constant regardless of the time horizon selected.
• C) remain constant regardless of the rate of growth.
• D) always equal the present value of the terminal price.

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Definitions:

Union General

A high-ranking officer in the Union army during the American Civil War.

Commanding General

A high-ranking military officer in charge of a particular command or operation, responsible for strategic planning and executing military operations.

United States Army

The land service branch of the U.S. Armed Forces, responsible for land-based military operations.