The Dividend Discount Model Indicates That the Value of a Stock

question 108

True/False

The dividend discount model indicates that the value of a stock is the present value of the dividends it will pay over the investor's horizon, plus the present value of the expected stock price at the end of that horizon.

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Definitions:

Tender

An offer of payment or delivery of goods in fulfillment of an obligation or contract.

Buffalo, NY

A city in New York State, known for its snow-heavy winters and as the home of the Buffalo wings.

Agreed Carrier

A carrier organization that has been approved or designated by parties in an agreement to transport goods.

Deemed to Accept

An assumed or implicit acceptance of terms or conditions by conduct or by failing to object.