If we believe that a company is following a constant dividend ...

[hubes95]

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]

Answer to Question 1

Answer: TRUE

Answer to Question 2

Answer: TRUE