Which of the following is least likely a factor influencing the forecast time horizon?

A. The investment strategy
B. The cyclicality of the industry
C. Dividends

Correct Answer: C

Dividends are not a factor to consider when considering the forecast time horizon. However, there is a possibility that an employer might require the use of a dividend discount model, yet, the company under evaluation does not, at the time of evaluation, pay dividends because it is not profitable. In such a case, the analyst forecasts need to include a period where the company becomes profitable and resumes dividend payment.