Question
You own shares in four different companies. You own: Preferred shares in Company A, a 10 year old company and the smallest in its industry.
You own shares in four different companies. You own: |
Preferred shares in Company A, a 10 year old company and the smallest in its industry. |
Common shares in Company B, a start-up firm with negative cash flow from assets. |
Common shares in Company C, a 60 year old company which increases dividends to keep pace with inflation. |
Common shares in Company D, a 20 year old company which increases dividends by $0.20 each quarter. |
Common shares in Company E, a 45 year old company which will pay a liquidating dividend of $20 in 9 more quarters. |
Which is the stock most likely to be valued as a constant perpetuity?
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