Which of the Following Statements Is NOT True About Constant-Growth

question 38

Multiple Choice

Which of the following statements is NOT true about constant-growth stocks?

• A) Cash dividend remains constant over time.
• B) Mature companies with a history of stable growth show this pattern.
• C) Dividends grow at a constant rate from one period to the next forever.
• D) Far distant-dividends have a very small present value and add little to the stock's price.

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Definitions:

Facets

Refers to the various aspects or dimensions of an object, concept, or phenomenon.

Defensive Behaviours

Measures or responses undertaken to safeguard oneself from real or imagined dangers or critiques.

Organizational Members

Individuals who are part of an organization, contributing to its culture, goals, and objectives through their roles and responsibilities.

Reduce Activity

Involves decreasing the level, intensity, or amount of work or operations, often aimed at improving efficiency or reducing costs.