Which of the Following Statements Is FALSE

question 40

Multiple Choice

Which of the following statements is FALSE?

• A)Estimating dividends,especially for the distant future,is difficult.
• B)A firm can only pay out its earnings to investors or reinvest their earnings.
• C)Successful young firms often have high initial earnings growth rates.
• D)According to the constant dividend growth model,the value of the firm depends on the current dividend level,divided by the equity cost of capital plus the growth rate.