Which of the Following Statements Is FALSE

question 19

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 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:

Infected Orthopedic Injury

A condition where an injury related to bones, joints, or muscles becomes contaminated with harmful microorganisms, causing inflammation and infection.

Itchy Feet

Itchy feet usually describe a sensation that causes an urge to scratch the skin on one's feet, which can be due to a variety of causes including skin conditions or irritations.

Dormitory Apartment

A type of shared housing typically found in colleges that combines elements of dormitory-style rooms and apartment living.