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Author Question: If we believe that a company is following a constant dividend policy, we can then use the current ... (Read 89 times)

hubes95

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  • 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
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  • Posts: 352
Reply #1 on: Jul 10, 2018
Answer to Question 1

Answer: TRUE

Answer to Question 2

Answer: TRUE


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