In the generalized dividend model, a future sales price far in the future does not affect the current stock price because
A) the present value cannot be computed.
B) the present value is almost zero.
C) the sales price does not affect the current price.
D) the stock may never be sold.
B
You might also like to view...
At the beginning of the year, your wealth is $10,000. During the year, you have an income of $90,000 and you spend $80,000 on consumption. You pay no taxes. Your wealth at the end of the year is
A) $20,000.00. B) $0. C) $90,000.00. D) $100,000.00.
Many eligible voters do not vote, and many who do vote don't read the biographies of candidates before they vote. These are examples of
a. the median-voter model b. representative government c. rational ignorance d. stupidity e. laziness
"Full employment" is said to exist when the actual unemployment rate is zero
Indicate whether the statement is true or false
Recessions occur because of:
A. real adverse shocks to the economy. B. shocks to technology. C. difficulties in coordinating economic affairs. D. All of these.