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.

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Definitions:

Radial Cleavage

A type of embryonic development in deuterostomes where the planes of cell division are either parallel or perpendicular to the vertical axis of the embryo, resulting in the cells being positioned directly above or beside each other.

Cleavage

Series of mitotic cell divisions, without growth, that converts the zygote to a multicellular blastula.

Meiotic Cell Divisions

A type of cell division that reduces the chromosome number by half, leading to the production of gametes in sexual reproduction.

Common Ancestor

The most recent ancestral form or species from which two different species evolutionary diverged.