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.

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Definitions:

Emotional Maladjustment

A state of psychological disequilibrium or inability to cope with aspects of life, leading to difficulties in emotional regulation and functioning.

Sensitive Caregiving

Providing responsive, attentive, and nurturing care that meets the emotional and developmental needs of children.

Cultural Adaptations

Modifications or changes in customs, beliefs, or practices among groups in response to environmental or social changes.

Easy Temperament

A temperament characterized by regularity in biological rhythms, the tendency to adapt easily to new experiences, and a general cheerfulness.