Finance help, stock evaluation question....

Question

Two investors are evaluating GM's stock for possible purchase. They agree on the expected value of D(1) and also on the expected future dividend growth rate. Further, they agree on the risk of the stock. However, one investor normally holds stocks for 2 years while the other normally holds stocks for 10 years. They should both be willing to pay the same price for GM's stock. True or false? Explain.

Answer 1

true - equity shares are a perpetuity, so holding period is irrelevant.

Answer 2

yes they should pay the same amount that should not be relevant it should be up to the buyer to do the term they want and all purchase at the same price

Answer 3

Define D(1).

But based on what you said and without knowing what D(1) defines it would seem that yes, they should both be willing to pay the same price.