Which of the Following Statements Is FALSE

question 13

Multiple Choice

Which of the following statements is FALSE?

• A)A common approximation is to assume that in the long run, dividends will grow at a constant rate.
• B)During periods of high growth, it is not unusual for firms to pay out 100% of their earnings to shareholders in the form of dividends.
• C)There is a tremendous amount of uncertainty associated with any forecast of a firm's future dividends.
• D)The dividend each year is the firm's earnings per share (EPS)multiplied by its dividend payout rate.

---

Definitions:

Drug Tests

Methods used to detect the presence of illegal or prescription drugs in a person's body, often utilized by employers, law enforcement, and in sports.

Federal Insurance Contribution Act

A U.S. law requiring a deduction from employees' paychecks and a contribution from employers to fund Social Security and Medicare.

Annual Wage Base

The maximum amount of income that is subject to certain taxes or benefits calculations within a calendar year.

Loss Of Income

Financial detriment resulting from an inability to work due to injury, business interruption, or other reasons, leading to a temporary or permanent lack of earnings.