Which of the Following Statements Is False

question 37

Multiple Choice

Which of the following statements is false?

• A) We must discount the cash flows from stock based on the equity cost of capital for the stock.
• B) The divided yield is the percentage return the investor expects to earn from the dividend paid by the stock.
• C) The firm might pay out cash to its shareholders in the form of a dividend.
• D) The dividend yield is the expected annual dividend of a stock, divided by its expected future sale price.

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Definitions:

Commercial Facilities

Premises or buildings used for commercial activities, such as retail stores, offices, or warehouses.

Private Nuisance

The use of property in such a way that it foreseeably interferes with a neighbour’s enjoyment of her property

Land Titles Office

A government office that registers legal documents relating to the ownership and boundaries of property, ensuring legal ownership.

Fee Simple

A type of freehold ownership where the owner has the most extensive property rights allowed by law.