Which of the Following Statements Is FALSE

question 91

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 earning 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.

Calculate working capital and understand its significance.

Analyze the effect of various transactions on financial ratios such as the current ratio, acid-test ratio, and debt-to-equity ratio.

Apply formulas to determine current ratio and acid-test ratio.

Assess the impact of inventory and accounts receivable management on liquidity and operational efficiency.

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Definitions:

SSH

Secure Shell (SSH) is a protocol used to securely access and manage a remote computer system over an unsecure network.

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Secure File Transfer Protocol; a protocol used to securely transfer files over a network.

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Network traffic that is secured through encryption or other security measures to prevent unauthorized access and ensure data privacy.

Firmware

A combination of hardware and software attributes. An example is a BIOS chip that has instructions (software) written into it.