Your parents are giving you $210 a month for 6 years while you are in college. At a 6 percent discount rate, what are these payments worth to you when you first start college?
$15,120.00
$12,671.30
$12,954.30
$12,449.30
$12,426.00
Which of the following statements is FALSE?
a. We should use the general dividend discount model to value the stock of a firm with rapid or changing growth.
b. As firms mature, their growth slows to rates more typical of established companies.
c. The dividend discount model values the stock based on a forecast of the future dividends paid to shareholders.
d. The simplest forecast for the firm’s future dividends states that they will grow at a constant rate, g, forever.