Which of the following statements is NOT true about the general dividend valuation model?
A) The model does not assume any specific pattern for future dividends, such as a constant growth rate.
B) It makes a specific assumption about when the share of stock is going to be sold in the future.
C) The model calls for forecasting an infinite number of dividends for a stock.
D) The price of a share of stock is the present value of all expected future dividends.

Question

Quizplus · Accepted Answer

The general dividend valuation model does not make any assumptions about when the share of stock is going to be sold in the future. It only focuses on the present value of expected future dividends. Therefore, statement B is not true.

Which of the Following Statements Is NOT True About the General