b. Present the theory according to chich the price of a stock may be seen as the discounted value of the stream of divid
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b. Present the theory according to chich the price of a stock may be seen as the discounted value of the stream of divid
b. Present the theory according to chich the price of a stock may be seen as the discounted value of the stream of dividends, both if (1) dividends are assumed as constant and (2) that if dividends grow at the constant rate, g. If you can choose according to these two assets only, how would you compose your portfolio? Discuss. [40 marks]
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