Which of the Statements Below Is FALSE

question 77

Multiple Choice

Which of the statements below is FALSE?

• A)In estimating the current price using the constant growth dividend model,we let g be the growth rate of the dividend stream and r be the rate of return required by the potential buyer of the stock.
• B)Constant growth means that the percentage increase in the dividend is the same each year.
• C)Div₀ refers to the dividends that have just been paid to the current owner of the stock.
• D)One unlikely dividend pattern is to raise or grow dividends by a fixed amount at fixed intervals.

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Definitions:

Authorized To Speak

Having the official right, permission, or capacity to express opinions or make decisions on behalf of oneself or others.

Disseminate Information

The act of spreading information widely, ensuring it reaches a broad audience.

Defamation

The act of damaging someone's good reputation by making false statements about them to a third party.

Guidelines

Instructions or principles that direct an individual's actions or the operations of an organization.