Which of the Following Statements Is FALSE

question 91

Multiple Choice

Which of the following statements is FALSE?

• A)The total payout model allows us to ignore the firm's choice between dividends and share repurchases.
• B)By repurchasing shares,the firm increases its share count,which decreases its earning and dividends on a per-share basis.
• C)The total payout model discounts the total payouts that the firm makes to shareholders,which is the total amount spent on both dividends and share repurchases.
• D)In the dividend discount model,we implicitly assume that any cash paid out to the shareholders takes the form of a dividend.