Valuing a share held five years by discounting the dividends and the f…

Question

Valuing a share held five years by discounting the dividends and the final price uses:

Accepted Answer

C. Discounted cash flow

1. The dividends form a stream over the holding period.
2. The sale price is a lump sum at the end.
3. Bringing both back to today is discounted cash flow.
_Source: OpenStax Principles of Finance 2e, Chapter 11, Stocks and Stock Valuation._

Answer

Discounted case flow

Answer

Discounted cost floor

Answer

Discounted card float

Valuing a share held five years by discounting the dividends and the final price uses:

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