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:

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A measure of the degree to which partners in a marital relationship are content and happy with their relationship.

Personality

The combination of emotional, attitudinal, and behavioral response patterns of an individual.

Conscientiousness

An attribute of character involving being orderly, dependable, and deeply committed to obligations.

Extraversion

A personality trait characterized by outgoingness, high energy, and sociability.