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.

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Definitions:

Receiver

The person a communication is intended for.

Communication

The act of transmitting verbal and nonverbal information and understanding between seller and buyer.

Adaptive Salesperson

An individual who can adjust their sales techniques and approaches based on differing customer needs and changing market environments.

Compatible

Capable of existing or working together in harmony without conflict or adverse effects.