Which of the Following Statements Is FALSE

question 71

Multiple Choice

Which of the following statements is FALSE?

• A) An investor will be willing to pay up to the point at which the current price of a share of stock equals the present value of the expected future dividends an expected future sale price.
• B) The expected total return of a stock should equal the expected return of other investments available in the market with equivalent risk.
• C) The total amount received in dividends and from selling the stock will depend on the investor's investment horizon.
• D) If the current stock price were greater than P₀ = , it would be a positive NPV investment, and we would expect investors to rush in and buy it, driving up the stocks price.

---

Definitions:

Output Rate

The speed at which products are produced or services are delivered by a company or a production process.

Stations Needed

The number of specific work or service points required to complete a task or process.

Computerized Diagnostic

The use of computer systems and software to identify defects or problems in machinery or electronic devices.

Standard Times

Set durations established for completing specific tasks, often used in manufacturing and labor planning.