Which of the Following Statements Is FALSE

question 57

Multiple Choice

Which of the following statements is FALSE?

• A)There are two potential sources of cash flows from owning a stock.
• B)An investor will be willing to pay a price today for a share of stock up to the point that this transaction has a zero NPV.
• C)An investor might generate cash by choosing to sell the shares at some future date.
• D)Because the cash flows from stock are known with certainty,we can discount them using the risk-free interest rate.

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Definitions:

Minority-Majority Districts

Electoral districts in which the majority of the constituents are racial or ethnic minorities.

Voting Rights Act

A landmark piece of federal legislation in the United States passed in 1965 to prohibit racial discrimination in voting.

Unconstitutional

Actions, laws, or policies that are deemed to violate the principles or specific provisions of a constitution, rendering them invalid or unenforceable.

Tiebreaking Votes

Votes cast by a presiding officer, leader, or designated member, that decides an issue when the votes are evenly split.