Which of the Following Statements Is False

question 49

Multiple Choice

Which of the following statements is false?

• A) A common approximation is to assume that in the long run, dividends will grow at a constant rate.
• B) The dividend each year is the firm's earnings per share (EPS) multiplied by its dividend payout rate.
• C) There is a tremendous amount of uncertainty associated with any forecast of a firm's future dividends.
• D) During periods of high growth, it is not unusual for firms to pay out 100% of their earnings to shareholders in the form of dividends.

Understand how to calculate inventory purchases required for future sales based on cost of goods sold percentages and inventory policies.

Analyze cash flow by calculating cash collections and disbursements based on sales, policies, and operational cycles.

Calculate the length of the cash cycle using turnover rates and payment periods.

Understand and calculate accounts payable and receivable periods using sales and cost of goods sold data.

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Definitions:

Emotional Processes

The mechanisms through which emotions are experienced, expressed, regulated, and understood.

Affective Forecasting

Predicting one’s emotional reactions to potential future events. These predictions are often inaccurate.

Self-discrepancy Theory

A theory in social psychology that describes how differences between individuals' actual, ideal, and ought selves can impact their emotional states.

Daily Influence

Daily influence refers to the constant and subtle effects our environment, interactions, and decisions have on our lives day-to-day.