Which of the Following Statements Is False

question 61

Multiple Choice

Which of the following statements is false?

• A) Estimating dividends, especially for the distant future, is difficult.
• B) A firm can only pay out its earnings to investors or reinvest its earnings.
• C) Successful young firms often have high initial earnings growth rates.
• D) According to the constant dividend growth model, the value of the firm depends on the current dividend level, divided by the equity cost of capital plus the growth rate.

---

Definitions:

Financial Statement

A formal record of the financial activities and position of a business, person, or other entity, presented in a structured manner.