Which of the Following Statements Is FALSE

question 26

Multiple Choice

Which of the following statements is FALSE?

• A) As firms mature, their earnings exceed their investment needs and they begin to pay dividends.
• B) Total return equals earnings multiplied by the dividend payout rate.
• C) Cutting the firm's dividend to increase investment will raise the stock 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 stock of a firm with rapid or changing growth.

---

Definitions:

ATP

ATP, short for adenosine triphosphate, functions as the cellular energy courier, vital for metabolic activities.

Exercise

Physical activities purposely engaged in to improve health and fitness, such as jogging, swimming, or lifting weights.

Borg Scale

A numerical scale that quantifies the intensity of exercise or perceived exertion, helping individuals to gauge and regulate their physical activity level.

Exercise Intensity

The level of demand that a given activity places on the body.