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

question 115

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 growth rate.
• D) always equal the present value of the terminal price.

---

Definitions:

Person-Centered Therapy

A nondirective, humanistic therapy developed by Carl Rogers, in which the therapist creates an accepting climate and shows empathy, freeing clients to be themselves and releasing their natural tendency toward self-actualization.

Insight

The sudden realization of the relationship between elements in a problem situation, which makes the solution apparent.

Cognitive

Pertaining to the mental processes involved in knowledge, understanding, learning, and thinking.

Class Consciousness

The awareness and understanding of one's place in a system of social classes, especially as it relates to the struggle between those classes.