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:

Attribution Theory

A theory that seeks to explain how individuals infer the causes of their own and others' behavior, attributing them to either internal dispositions or external situations.

Social Group

A collection of individuals who interact with each other and share similar characteristics and a sense of unity.

Folk Psychologists

are laypeople who apply their intuitive understanding of human behavior and mental processes without formal psychological training.

Nineteenth Century

The period from 1801 to 1900, marked by significant social, political, and technological changes worldwide.