The expected future dividend growth rate

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Two investors are evaluating General Electric’s stock for possible purchase. They agree on the expected value of D1 and also on the expected future dividend growth rate. Further, they agree on the risk of the stock. However, one investor normally holds stocks for 2 years and the other normally holds stocks for 12 years. Should both be willing to pay the same price for General Electric’s stock? True or false? Explain

Reference no: EM131188168

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