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Author Question: If we assume that a company will be in business forever and that it continues to pay dividends ... (Read 110 times)

ssal

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on: Jul 10, 2018
If we assume that a company will be in business forever and that it continues to pay dividends during its existence, then we have an annuity dividend stream.
 
  Indicate whether the statement is true or false.

Question 2

The dividend stream we would have legal claim to is for only that period of the company's life during which we own the stock or until the company goes out of business and stops paying dividends
 
  Indicate whether the statement is true or false.


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BUTTHOL369

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Reply #1 on: Jul 10, 2018
Answer to Question 1

Answer: FALSE
Explanation: If we assume that the company will be in business forever, then we have a PERPETUAL dividend stream.

Answer to Question 2

Answer: TRUE


ssal

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Reply 2 on: Jul 10, 2018
Gracias!

kishoreddi

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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