Which of the Following Statements Is False

question 85

Multiple Choice

Which of the following statements is false?

• A) As firms mature, their earnings exceed their investment needs and they begin to pay dividends.
• B) Total return equals earnings multiplied by the dividend payout rate.
• C) Cutting the firm's dividend to increase investment will raise the stock price if, and only if, the new investments have a positive NPV.
• D) We cannot use the constant dividend growth model to value the stock of a firm with rapid or changing growth.

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Definitions:

Global Expansion

The strategy of a business to enter and compete in international markets, broadening its geographic footprint and customer base.

Exporting Of Goods

The process of sending goods or products from one country to another for the purpose of selling.

Technically-Skilled Workers

Employees who possess specialized technical skills, often relating to a specific field or technology, enabling them to perform complex tasks efficiently.

BRIC Country

Refers to Brazil, Russia, India, and China, which are four fast-growing developing economies with significant influence on global markets.