Which of the Following Statements Best Describes the Concept Used

Multiple Choice

Which of the following statements best describes the concept used to value shares?

A) The value of an infinite stream of dividends discounted by the current short-term interest rate assuming a company has an infinite life.
B) Market price can be expressed as the present value of an infinite stream of dividends.
C) The present value of the dividend stream and expected capital gain must be calculated separately and then added together.
D) Market price can be expressed as the present value of an infinite stream of dividends assuming a company has an infinite life.