Which of the Following Statements Is FALSE

question 29

Multiple Choice

Which of the following statements is FALSE?

• A)We must discount the cash flows from stock based on the equity cost of capital for the stock.
• B)The divided yield is the percentage return the investor expects to earn from the dividend paid by the stock.
• C)The firm might pay out cash to its shareholders in the form of a dividend.
• D)The dividend yield is the expected annual dividend of a stock,divided by its expected future sale price.

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Definitions:

Mathematical Algorithm

A finite sequence of well-defined instructions typically used to solve a class of specific problems or to perform a computation.

Expert Demand Forecast

A projection or estimation of future demand for goods or services based on analyses conducted by experts in the field.

Forecasting Methods

Techniques utilized to predict future events or trends, including sales, economic conditions, and consumer behavior predictions.

Ratio Analysis

A quantitative analysis of information contained in a company’s financial statements, used to evaluate the overall financial condition and performance of a business.