Two investors have the same required return. They also have identical expectations about a stock's expected dividend and growth rate, and both agree it is a constant growth company. Investor A plans to hold the stock for 1 year and Investor B plans to hold it for 10 years. Both investors will estimate the same value for the stock. O True

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Two investors have the same required return. They also have identical expectations about a stock's expected dividend and growth rate, and both agree it is a constant growth
company. Investor A plans to hold the stock for 1 year and Investor B plans to hold it for 10 years. Both investors will estimate the same value for the stock.
True
False
Transcribed Image Text:Two investors have the same required return. They also have identical expectations about a stock's expected dividend and growth rate, and both agree it is a constant growth company. Investor A plans to hold the stock for 1 year and Investor B plans to hold it for 10 years. Both investors will estimate the same value for the stock. True False
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