Which of the Following Statements Is FALSE About Dividend Payout

question 25

Multiple Choice

Which of the following statements is FALSE about dividend payout and growth?

• A) A common approximation is to assume that in the long run, dividends will grow at a constant rate.
• B) The dividend each year is the firm's earnings per share (EPS) multiplied by its dividend payout rate.
• C) There is a tremendous amount of uncertainty associated with any forecast of a firm's future dividends.
• D) 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.

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Definitions:

REM Sleep

Rapid eye movement sleep; a recurring sleep stage during which vivid dreams commonly occur. Also known as paradoxical sleep, because the muscles are relaxed (except for minor twitches) but other body systems are active.

Jerky Movements

Sudden, quick movements that are not smooth or controlled, often involuntary, and can be a symptom of various neurological conditions.

Eyes

Organs of vision that detect light and convert it into electro-chemical impulses in neurons, allowing for sight.

Hallucinations

False sensory experiences, such as seeing something in the absence of an external visual stimulus.