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:

Urgent Text Message

A text message that requires immediate attention or conveys an urgent matter.

Business Attire

Clothing that is suitable for a professional work environment, often including suits and dress shoes.

Perfume

A fragrant liquid typically made from essential oils extracted from flowers and spices, used to impart a pleasant smell to one's body or clothes.

Continuing Education

Ongoing, formal learning activities designed to develop new skills or knowledge, often required in various professions for maintaining licensure or certification.