Which of the Following Statements Is FALSE

question 57

Multiple Choice

Which of the following statements is FALSE?

• A)There are two potential sources of cash flows from owning a stock.
• B)An investor will be willing to pay a price today for a share of stock up to the point that this transaction has a zero NPV.
• C)An investor might generate cash by choosing to sell the shares at some future date.
• D)Because the cash flows from stock are known with certainty,we can discount them using the risk-free interest rate.

---

Definitions:

Lower Costs

The reduction of expenses in the production or procurement of goods or services, often to improve profitability.

High Flexibility

The capability to adapt quickly and effectively to new conditions, changes, or challenges.

Matrix Structure

An organizational structure that combines elements of both functional and project-based structures, facilitating resource sharing and functional expertise.

Horizontal Structure

An organizational layout that emphasizes teamwork and collaboration among departments or teams, with a minimal level of hierarchy.