Multiple Choice
How can dividends over the entire future life of a business be relevant to a short term investor?
A) The share price when the investor sells should reflect the present value of all future earnings streams of the company.
B) The share price when the investor sells should reflect the present value of all future dividends of the company.
C) The share price when the investor sells should reflect the present value of all future earnings per share of the company.
D) The share price when the investor sells should reflect the after-tax present value of all future earnings of the company.
E) The share price when the investor sells should reflect after-tax the present value of all future dividends of the company.
Correct Answer:
Verified
Correct Answer:
Verified
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