Which of the Following Statements Is FALSE

question 57

Multiple Choice

Which of the following statements is FALSE?

• A)There are two potential sources of cash flows from owning a stock.
• B)An investor will be willing to pay a price today for a share of stock up to the point that this transaction has a zero NPV.
• C)An investor might generate cash by choosing to sell the shares at some future date.
• D)Because the cash flows from stock are known with certainty,we can discount them using the risk-free interest rate.

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Definitions:

Model Appropriate Behavior

Demonstrating behavior that is considered correct or suitable in a particular context, often for the purpose of teaching.

Complement

Something that completes or makes perfect, often used to describe things that enhance or improve each other when combined.

Approaches

Methods or ways of dealing with problems or situations.

Understanding Personality

The exploration and explanation of the uniqueness of an individual, including patterns of thoughts, feelings, and behaviors.