« previous next »

Author Question: If we believe that a company is following a constant dividend policy, we can then use the current ... (Read 96 times)

hubes95

  • Hero Member
  • *****
  • Posts: 561
on: Jul 10, 2018
If we believe that a company is following a constant dividend policy, we can then use the current dividend to predict all future dividends because they are the same.
 
  Indicate whether the statement is true or false.

Question 2

In applying the constant dividend model with infinite horizon to price a stock for purchase, we assume the company will pay dividends forever and that we will hold onto our stock forever.
 
  Indicate whether the statement is true or false.


FergA

  • Sr. Member
  • ****
  • Posts: 352
Reply #1 on: Jul 10, 2018
Answer to Question 1

Answer: TRUE

Answer to Question 2

Answer: TRUE


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

The training of an anesthesiologist typically requires four years of college, 4 years of medical school, 1 year of internship, and 3 years of residency.

Did you know?

The lipid bilayer is made of phospholipids. They are arranged in a double layer because one of their ends is attracted to water while the other is repelled by water.

Did you know?

The Romans did not use numerals to indicate fractions but instead used words to indicate parts of a whole.

Did you know?

Multiple experimental evidences have confirmed that at the molecular level, cancer is caused by lesions in cellular DNA.

Did you know?

Approximately 70% of expectant mothers report experiencing some symptoms of morning sickness during the first trimester of pregnancy.

Booker T. Washington in his office at Tuskegee Institute, 1900. Washington chose a policy of accommo Booker T. Washington in his office at Tuskegee Institute, 1900. Washington chose a policy of accommo
Average Hourly Earnings of U.S. Workers in Current and Constant Dollars Average Hourly Earnings of U.S. Workers in Current and Constant Dollars
To reverse the direction of operation, the polarity of the current through the motor is reversed. To reverse the direction of operation, the polarity of the current through the motor is reversed.
Reaction at constant-volume Reaction at constant-volume
Write equilibrium constant expressions for the following reactions in terms of concentration: Write equilibrium constant expressions for the following reactions in terms of concentration:
The executive legislative "struggle" over foreign policy The executive legislative "struggle" over foreign policy
Video: Kidney Stones

For a complete list of videos, visit our video library