Determine the factors affecting price of a stock


Two people agree on the riskiness of a stock, they also agree on the expected value of D1 and on the expected future dividend growth rate. One person normally holds stocks for 2 years, while the other normally holds stocks for 10 years. Should both be willing to pay the same price for the stock. Why or why not?

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: Determine the factors affecting price of a stock
Reference No:- TGS026243

Expected delivery within 24 Hours