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:

Freudian

Relating to or influenced by the ideas and works of Sigmund Freud, particularly concerning the unconscious mind, psychosexual stages, and defense mechanisms.

Jungian

Jungian pertains to the theories and methodologies related to the psychology of Carl Jung, emphasizing concepts like the collective unconscious and archetypes.

Evolutionary

Pertaining to evolution; involving gradual changes in species over generations through natural selection and genetic variation.

Biologically Adaptive Behavior

Behaviors or traits that increase the survival or reproductive success of organisms in a particular environment.