Suppose Mr$.$ Rossi just bought a share of AirPower Co$.,$ a renewable energy startup. AirPower promises to pay Mr$.$ Rossi $$16$ in dividends for one year and then the firm will shut down. Suppose that the liquidation value of the share is $$3,$ and the rate of time preference is $7\%.$ Then, according to the single$-$period dividend discount model, the present value of the cash payment received by Mr$.$ Rossi in one year would be $,$ which means that the market price of the share of stock is

True or False: In multiperiod dividend discount models, the value of a share is assumed to be the discounted value of the dividends that the share will pay the shareholder.

True

False