Which of the Following Statements Is FALSE

question 16

Multiple Choice

Which of the following statements is FALSE?

• A)We cannot use the general dividend-discount model to value the stock of a firm with rapid or changing growth.
• B)The dividend-discount model values the stock based on a forecast of the future dividends paid to shareholders.
• C)As firms mature, their growth slows to rates more typical of established companies.
• D)The simplest forecast for the firm's future dividends states that they will grow at a constant rate; i.e. forever.

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Definitions:

Old Patterns

Repeated behaviors or habits that individuals or groups continue to exhibit, often unconsciously, which can sometimes hinder growth or positive change.

Ending Goal

The final objective or aim that one seeks to achieve at the conclusion of a process or endeavor.

Behavior Modification Programs

A systematic approach to changing behavior using principles of operant conditioning, reinforcement, and punishment.

Reinforcement

In behavioral psychology, a process that strengthens a behavior or increases the likelihood of its repetition through the application of a stimulus.