Which of the Following Is (Are)false

question 61

Multiple Choice

Which of the following is (are) false?

• A) The constant dividend payout ratio policy seeks to pay a constant percentage of earnings each year.
• B) The stable dollar dividend per share policy seeks to maintain a relatively stable percentage dividend over time.
• C) The small, regular dividend plus a year-end extra policy pays a small, regular dividend plus a year-end extra dividend in good years.
• D) The constant dividend payout ratio policy will result in more variability in dividends than the stable dollar dividend per share policy.

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Definitions:

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return, often used in the time value of money calculations.

Growth Opportunities

Potential situations or initiatives that could lead to business expansion, including new markets, products, or services.

Expected Rate

The anticipated return on an investment over a specific period, often based on historical data and analysis of market conditions.

Constant-Growth Rate

A growth rate applied continuously and at a constant percentage, often used in the dividend discount model to value stocks.