Which of the Following Statements Is FALSE Regarding Profitable and Unprofitable

question 1

Multiple Choice

Which of the following statements is FALSE regarding profitable and unprofitable growth?

• A) If a firm wants to increase its share price, it must diversify.
• B) If a firm retains more earnings, it will pay out less of those earnings, reducing its dividends.
• C) A firm can increase its growth rate by retaining more of its earnings.
• D) Cutting a firm's dividend to increase investment will raise the stock price if the new investment has a positive net present value (NPV).

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Definitions:

NAAQS

The National Ambient Air Quality Standards, regulations that establish allowable concentration levels of pollutants in the air in the United States.

SIP

An acronym that can refer to several concepts, including Systematic Investment Plan, which allows investors to contribute small amounts periodically into a mutual fund.

EIS

An Environmental Impact Statement, a document prepared to describe the effects for proposed activities on the environment, often required for major projects to assess their environmental consequences.

Federal Agency

A government body in the United States created by the Congress to enforce laws and regulations in a specific area of responsibility.