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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Definitions:

Promissory Note

A monetary document featuring a guarantee from one party to transfer a fixed sum of money to another party, either upon request or at a designated time in the future.

Bills Of Exchange Act

Legislation that regulates the creation, endorsement, and management of bills of exchange, promissory notes, and cheques.

Endorsement

A formal expression of approval or support, often used in the context of public figures promoting products or in documents to signify agreement.

Consumer Protection

Refers to laws and regulations designed to ensure the rights of consumers as well as fair trade, competition, and accurate information in the marketplace.