Which of the Following Statements Is False

question 49

Multiple Choice

Which of the following statements is false?

• A) A common approximation is to assume that in the long run, dividends will grow at a constant rate.
• B) The dividend each year is the firm's earnings per share (EPS) multiplied by its dividend payout rate.
• C) There is a tremendous amount of uncertainty associated with any forecast of a firm's future dividends.
• D) During periods of high growth, it is not unusual for firms to pay out 100% of their earnings to shareholders in the form of dividends.

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Definitions:

Continuous Process

A production process that operates continuously without interruption to manufacture products or process materials in an unending flow.

Work In Process

The cost of unfinished goods in the manufacturing process at a given time, including labor, material, and overhead.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and are a significant portion of the production cost.

Department 2

A specific subdivision within an organization tasked with distinct functions or responsibilities, implied to be one of several.