Which of the Following Statements Is FALSE

question 59

Multiple Choice

Which of the following statements is FALSE?

• A)Total return equals earnings multiplied by the dividend payout rate.
• B)As firms mature, their earnings exceed their investment needs and they begin to pay dividends.
• C)Cutting the firm's dividend to increase investment will raise the share price if, and only if, the new investments have a positive net present value (NPV).
• D)We cannot use the constant dividend growth model to value the shares of a firm with rapid or changing growth.

---

Definitions:

DSUM Function

A database function in Excel that calculates the sum of a column in a list or database that matches specified conditions.

Expenses Column

A designated column in spreadsheets or financial documents used to record and calculate costs incurred.

DCOUNTA Function

A function in spreadsheet software that counts the number of non-blank cells in a database that match specified conditions.

Real Estate Agent

A licensed professional who acts as an intermediary between sellers and buyers of real estate, assisting in the sale, purchase, or rental of properties.