Which of the following statements about a share with a flat fundamental value is incorrect?
A) A share with a flat fundamental value can be redeemed at a fixed value at the end of the trading period.
B) A flat fundamental value is a way of approximating a share that is long or infinitely lived.
C) A flat fundamental value implies that the time-path of expected dividends can be represented by a horizontal straight line.
D) A flat fundamental value implies that the time-path of expected dividends can be represented by downward sloping straight line.

Question

Quizplus · Accepted Answer

A flat fundamental value means that the expected dividends remain constant over time, represented by a horizontal line, not a downward sloping line.

Which of the Following Statements About a Share with a Flat