According to the basic Dividend Discount model, the value an investor should assign to a share of stock is dependent on the length of time he or she plans to hold the stock.Is the above statement True or False? Please Explain

Respuesta :

Answer:

True

Explanation:

The above statement is true because the Dividend Discount model is based on the present value of the dividend payments that will be received over time.  The longer the dividends are received, the higher the intrinsic value of the price of the stock will be when discounted to the present value.  This model uses the discounted values or present values of dividends and the selling price to arrive at the stock's intrinsic value.