The Longer the Time Horizon of a Project,the More Important

question 37

True/False

The longer the time horizon of a project,the more important choosing the right discount rate is.

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Definitions:

Dividend Yield

The dividend per share divided by the price per share, indicating how much a company pays out in dividends each year relative to its stock price.

Capital Gain

The profit from the sale of assets or investments when the sale price exceeds the purchase price.

Geometric Average Return

The average rate of return of an investment calculated by multiplying n variables and then taking the n-th root.

Dividends

Profits distributed by a corporation to its members, typically in the form of payments.