Which of the Following Statements Is False

question 66

Multiple Choice

Which of the following statements is false?

• A) The total payout model allows us to ignore the firm's choice between dividends and share repurchases.
• B) By repurchasing shares, the firm increases its share count, which decreases its earnings and dividends on a per-share basis.
• C) The total payout model discounts the total payouts that the firm makes to shareholders, which is the total amount spent on both dividends and share repurchases.
• D) In the dividend discount model we implicitly assume that any cash paid out to the shareholders takes the form of a dividend.

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Definitions:

Transference

In psychotherapy, the process by which patients project feelings about important people in their lives onto the therapist.

Systematic Desensitization

A therapeutic method aimed at assisting individuals in overcoming fears and anxiety disorders by progressively exposing them to the object or situation they fear in a regulated way.

Eclectic Approach

A therapeutic approach that incorporates a variety of therapeutic principles and philosophies to create the ideal treatment program to meet the specific needs of the patient.

Meta-Analysis

A statistical procedure for analyzing the results of multiple studies to reach an overall conclusion.