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5. True/False State whether the following statements are true or false. You do NOT need to provide a justification. a) The amount of future dividends
5. True/False State whether the following statements are true or false. You do NOT need to provide a justification. a) The amount of future dividends for a common stock is promised on the stock certificate. (True / False) b) Future cash flows from a stock will differ depending on how long we hold it. As a result, the present value of stock as of today varies depending on the holding period. (True / False) c) Investors would require a higher return on a stock with riskier cash flows. Consistently, we discount the stock's future cash flow at a higher rate. (True / False)
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