In the generalized dividend model, if the expected sales price is in the distant future
A) it does not affect the current stock price.
B) it is more important than dividends in determining the current stock price.
C) it is equally important with dividends in determining the current stock price.
D) it is less important than dividends but still affects the current stock price.
A
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The ________ the reserve ratio, the ________ the money multiplier
A) larger; larger B) smaller; smaller C) smaller; larger D) None of the above are correct.
If the random walk theory is correct, prudent investors could choose their stock portfolio by
A. throwing darts at the newspaper’s financial page. B. spending money to consult a stock forecaster. C. spending time analyzing past stock performance. D. not investing in stocks at all since price behavior is completely erratic.
A graph is one method of expressing a model
a. True b. False Indicate whether the statement is true or false
Which of the following commodities can be considered as an inferior good?
a. Dwelling in a small apartment located in a suburb b. Washing clothes in a washer at home c. Eating out at an upscale restaurant d. Spending vacations at exotic locations