The farther into the future a stock dividend is expected to be paid, the less the stock price will be discounted.

Question

Quizplus · Accepted Answer

The farther into the future a stock dividend is expected to be paid, the more the stock price will be discounted. This is because investors place a higher value on receiving cash sooner rather than later, and therefore they will discount the stock price more heavily as the dividend payment date gets further away.

The Farther into the Future a Stock Dividend Is Expected