How Is It Possible to Ignore Cash Dividends That Occur

question 87

Multiple Choice

How is it possible to ignore cash dividends that occur far into the future when using a dividend discount model? Those dividends:

• A) will be paid to a different investor.
• B) will not be paid by the firm.
• C) have an insignificant present value.
• D) ignore the tax consequences of future dividends.

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Definitions:

Political Party

An organized group of people with at least roughly similar political aims and opinions, that seeks to influence public policy by getting its candidates elected to public office.

Federal Power

Federal power refers to the authorities and responsibilities held by the federal government, as distinguished from those of state or local governments, in countries with a federal system of governance.

Democratic Republicans

A political party in the early United States, led by Thomas Jefferson and James Madison, advocating for states' rights and a strict interpretation of the Constitution.

Treaty of Greenville

An agreement signed in 1795 between the United States and Native American tribes, marking the end of the Northwest Indian War and ceding much of present-day Ohio to the U.S.