Which of the Following Statements Is NOT True About the General

question 42

Multiple Choice

Which of the following statements is NOT true about the general dividend valuation model?

• A) The model does not assume any specific pattern for future dividends, such as a constant growth rate.
• B) It makes a specific assumption about when the share of stock is going to be sold in the future.
• C) The model calls for forecasting an infinite number of dividends for a stock.
• D) The price of a share of stock is the present value of all expected future dividends.

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