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.

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Definitions:

Validity

The extent to which a concept, conclusion, or measurement is well-founded and corresponds accurately to the real world.

Whiten Names

The practice of altering one's name on job applications or professional documents to appear more ethnically neutral or to fit perceived cultural norms, often to avoid discrimination.

Multiple Cutoff Model

A selection-decision model that requires an applicant to achieve some minimum level of proficiency on all selection dimensions.

Minimum Score

A predetermined lowest acceptable performance, achievement, or quality level.