True or false question based on stock valuation

Reference no: EM1357477

There are Two investors are evaluating General Motors (GM) stock for a possible stock purchase. They agree on the expected value of D(1) and also on the expected future dividend growth rate. Also, they agree on the risk of the stock. However, one investor normally holds stocks for only 2 years while the other investor usually holds stocks for 10 years.

On the basis of market multiple analysis, they should both be willing to pay the same price for GM's stock. Is this True or is it false?

Reference no: EM1357477

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