Solved

An Investor Planning to Sell Stock at the End of Two

Question 14

Multiple Choice

An investor planning to sell stock at the end of two years can still use the DDM to value the stock because the anticipated selling price is:


A) too risky to be considered a variable within the model.
B) irrelevant to the analysis since it does not consider future dividends.
C) built into the model as the selling price in two years would be simply the present value of anticipated dividends.
D) worth little as the present value of the price in two years would be close to zero.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents