Which of the Following Statements Is FALSE

question 40

Multiple Choice

Which of the following statements is FALSE?

• A)Estimating dividends,especially for the distant future,is difficult.
• B)A firm can only pay out its earnings to investors or reinvest their earnings.
• C)Successful young firms often have high initial earnings growth rates.
• D)According to the constant dividend growth model,the value of the firm depends on the current dividend level,divided by the equity cost of capital plus the growth rate.

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Definitions:

Supremacy Clause

The Supremacy Clause is a provision in Article VI of the U.S. Constitution establishing that federal law takes precedence over state laws and constitutions when they are in conflict.

Constitution

The fundamental law of a nation or state, outlining the principles and organization of its government. In the U.S. context, it refers to the supreme law of the United States.

Private Property

The legal designation for ownership of property by non-governmental legal entities, individuals, or corporations.

First Amendment

Part of the United States Constitution that guarantees freedoms concerning religion, expression, assembly, and the right to petition the government.