Two investors are evaluating Anywhere e-SIM Ltd.’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 riskiness of the stock. However, one investor normally holds stocks for 2 years, while the other normally holds stocks for 10 years. Is it true that they should both be willing to pay the same price for this stock? Explain based on how stocks are valued and provide a numerical example to support your arguments.
MathBot Answer:
MathBot is working on a solution to your problem.
