Which of the Following Statements Is False

question 88

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:

Reasonable Doubt

The standard of proof required in criminal trials, indicating that there is no other logical explanation that can be derived from the facts except that the defendant committed the crime.

Criminal Case

A legal proceeding brought by the government against an individual or entity accused of committing a crime.

Voluntary Intoxication

A legal defense claiming that a person's ability to understand the wrongfulness of his or her actions was impaired due to intentional consumption of alcohol or drugs.

Premeditation

The action of planning or plotting in advance, especially with intent to commit a specific act such as a crime.