Which of the Following Statements Is FALSE

question 53

Multiple Choice

Which of the following statements is FALSE?

• A)A common approximation is to assume that in the long run,dividends will grow at a constant rate.
• B)The dividend each year is the firm's earnings per share (EPS)multiplied by its dividend payout rate.
• C)There is a tremendous amount of uncertainty associated with any forecast of a firm's future dividends.
• D)During periods of high growth,it is not unusual for firms to pay out 100% of their earnings to shareholders in the form of dividends.

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Definitions:

Cognitive Moral Development

A theory proposed by Lawrence Kohlberg that aims to explain the process by which individuals develop their ability to make ethical decisions based on moral reasoning.

Universal Ethical Principles

Fundamental moral guidelines that are believed to be universally applicable and valid, transcending cultural, national, or individual differences.

Utilitarianism

A moral theory that suggests the best action is the one that maximizes utility, typically defined as that which produces the greatest well-being of the greatest number of people.

Deontology

An ethical theory that emphasizes duty and rules over the outcomes of actions.