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27 February, 01:53

Which of the following statements is (are) true? I. Dividend payments represent a cash flow to the owner of a stock. II. The present value of a stock's cash flows determine the price of a stock

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  1. 27 February, 03:32
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    Both Statements are True

    Explanation:

    Both statements are true

    I. Dividend is the payment of earning of the company to the stockholders of the company. So it is true that the dividend payments represents a cash flow to the owner of a stock.

    II. The price of the stock can be calculated by determining present value of all cash flows relating to stock. So, the II statement is also true.
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