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.

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Definitions:

Advertisements

Public notices promoting products, services, or events through various media channels to attract consumer attention and generate sales.

Definiteness

The quality of being clear, precise, and well-defined in terms or conditions.

Consideration

The value, which can be in the form of goods, services, money, or a promise, exchanged between parties in a contract.

Present Intent

The current intention or determination of an individual to perform a particular act or to act in a particular manner.