Which of the Following Statements Is False Regarding Profitable and Unprofitable

question 71

Multiple Choice

Which of the following statements is false regarding profitable and unprofitable growth?

• A)If a firm wants to increase its share price,it must cut its dividend and invest more.
• B)If the firm retains more earnings,it will be able to pay out less of those earnings,which means that the firm will have to reduce its dividend.
• C)A firm can increase its growth rate by retaining more of its earnings.
• D)Cutting the firm's dividend to increase investment will raise the stock price if,and only if,the new investments have a positive NPV.

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Definitions:

Deceleration

The process of slowing down or reducing speed.

Middle Class

A socio-economic class between the working class and upper class, typically associated with moderate income, higher education levels, and stable employment.

Global Inequality

The unequal distribution of resources, wealth, opportunities, and power across countries and within societies worldwide.

India

A country in South Asia, known for its diverse cultures, languages, and history as one of the world's oldest civilizations.