Which of the Following Statements Is False

question 28

Multiple Choice

Which of the following statements is false?

• A) The total payout model allows us to ignore the firm's choice between dividends and share repurchases.
• B) By repurchasing shares, the firm increases its share count, which decreases its earning and dividends on a per-share basis.
• C) The total payout model discounts the total payouts that the firm makes to shareholders, which is the total amount spent on both dividends and share repurchases.
• D) In the dividend discount model we implicitly assume that any cash paid out to the shareholders takes the form of a dividend.

---

Definitions:

Epidermis

The top layer of skin that acts as a waterproof shield and is instrumental in the development of our skin tone.

Stratum

A layer or a series of layers of rock in the ground or a level or layer of a material, typically one of several parallel layers stacked one above the other.

Melanocytes

Cells located in the skin that produce melanin, the pigment responsible for the skin's color and protection against UV radiation.

Keratinocytes

Cells that make up the majority of the epidermis, producing keratin to help form a protective barrier for the skin.