Which One of the Following Statements Is Not True About

question 35

Multiple Choice

Which one of the following statements is not true about zero-growth shares?

• A)Dividend payments are zero.
• B)Dividend stays constant over time.
• C)There is no growth in dividends over time.
• D)The cash flow pattern resembles a perpetuity with a constant cash flow.

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Definitions:

Joint Cost

Costs incurred in the process of producing two or more products simultaneously from the same input or process.

Split-Off Point

The split-off point is the stage in a manufacturing process where joint products can be recognized as separate products, each with its own identity.

Joint Products

Joint products refer to two or more products that are generated from a common set of inputs or production processes, where no single product can be identified as the main product until a certain point in the production process.

Fixed Cost

A cost that remains constant, in total, regardless of changes in the level of activity within the relevant range. If a fixed cost is expressed on a per unit basis, it varies inversely with the level of activity.