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:

Indirect Order Plan

A structured approach to communication that begins with background information or a rationale before presenting the main message or request, often employed to minimize resistance or negative reactions.

Organizing Information

Organizing information is the process of arranging data or details in a structured and coherent manner to improve understanding and retrieval.

Indirect Order Plan

A method of organization in writing or speech where important information or conclusions are presented after preliminary details.

Written Communication

The exchange of information or messages through written symbols, including letters, emails, reports, and texts.