It Is Possible to Ignore Cash Dividends That Occur Very

question 102

Multiple Choice

It is possible to ignore cash dividends that occur very 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.

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Definitions:

Higher-income Families

Families with financial earnings substantially above the average, often associated with greater access to resources, education, and health care.

Child Care Arrangements

The methods or plans put in place by parents or guardians to look after children, which can include daycare, nannies, or family care.

Lower Income Families

Refers to families living on earnings that fall below the median income level for their area, often facing financial challenges.

Television Viewing

The activity of watching content on a television, which can include various genres such as news, entertainment, and educational programs, with implications for behavior and culture.