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.

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Definitions:

Nine Components

A term that could refer to the nine essential parts or elements of a specific system, theory, or model, depending on context.

Gardner

Refers to Howard Gardner, a developmental psychologist known for his theory of multiple intelligences which suggests people have different kinds of intelligences.

Creative People

Individuals who possess the ability to produce new and original ideas, solutions, or artistic expressions.

Mental Imagery

A cognitive process where an individual visualizes or simulates a perception or experience in their mind in the absence of external stimuli.