Which of the Following Statements Is FALSE About Dividend Payout

question 25

Multiple Choice

Which of the following statements is FALSE about dividend payout and growth?

• 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.

---

Definitions:

Social and Economic

Pertaining to the interactions between social behaviors, relationships, and the economic activities within a society.

Social Media

Social media are digital platforms that facilitate the creation and sharing of information, ideas, personal messages, and other content via virtual communities and networks.

Social Cause

A broad issue or movement that exists within society aimed at implementing change or achieving a specific outcome benefiting the public.

Rationale

The underlying reason or logic behind a decision, action, or belief.