Question: 1. Common stock valuation In the dividend valuation model, the value of a share of stock is the present value of the expected cash flow

1. Common stock valuation In the dividend valuation model, the value of a share of stock is the present value of the expected cash flow stream to shareholders. In general, the stream consists of dividends and future selling price. But regardless of the holding period, a share of stock can be valued solely on the basis of its future dividend's streams. Why

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The facts rule: We have a tendency to have more confidence in information that is documented with figures than information that isnt.

The permanence rule: We tend to have more confidence in information that is of a more permanent nature than information that is of a temporary nature.

The official stamp rule: We tend to have more confidence in information that is exempt from the Freedom of Information Act than if the same information was made readily available.