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    Fundamentals of Corporate Finance Study Set 14
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    Exam 7: Stock Valuation
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    The Valuation Principle States That the Value of a Stock
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The Valuation Principle States That the Value of a Stock

Question 21

Question 21

True/False

The Valuation Principle states that the value of a stock is equal to the present value (PV) of both the dividends and future sale price of that stock which the investor will receive.

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