How is it possible to ignore cash dividends that occur far into the future when using a dividend discount model? Those dividends:
A) have an insignificant present value.
B) will be paid to a different investor.
C) will not be paid by the firm.
D) ignore the tax consequences of future dividends.
Answer: A) have an insignificant present value.
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_____ is a sales practice that involves building, maintaining, and enhancing interactions with customers in order to develop long-term satisfaction through mutually beneficial partnerships
a. Price-based selling b. Adaptive selling c. Stimulus-response selling d. Relationship selling
The market risk premium:
A) varies over time as both the risk-free rate of return and the market rate of return vary. B) plus the risk-free rate of return equals the cost of capital for any firm with a beta of zero. C) is equal to one percent for a risk-free asset. D) is equal to the risk-free rate of return multiplied by the beta of a firm. E) is modified by the standard deviation when computing the cost of equity.