Which of the Following Statements Is FALSE

question 39

Multiple Choice

Which of the following statements is FALSE?

• A)We cannot use the general dividend-discount model to value the stock of a firm with rapid or changing growth.
• B)As firms mature,their growth slows to rates more typical of established companies.
• C)The dividend-discount model values the stock based on a forecast of the future dividends paid to shareholders.
• D)The simplest forecast for the firm's future dividends states that they will grow at a constant rate,i.e. ,forever.

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