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

question 49

Multiple Choice

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

• A) Dividend payment pattern remains constant over time.
• B) The cash flow pattern resembles a perpetuity with a constant cash flow.
• C) Dividend pattern for common stock of a company shows growth over time.
• D) There is no growth in dividends over time.

---

Definitions:

P-values

P-values provide the probability of obtaining an effect at least as extreme as the one in your sample data, assuming the truth of the null hypothesis.

Standard Error

A statistic that measures the average distance that a sample statistic, such as the mean, deviates from the actual population mean.

Alternative Hypothesis

A statement that contradicts the null hypothesis and is tested directly in a hypothesis testing framework, assuming the null hypothesis is false.

T Procedure

A statistical test used to determine if there is a significant difference between the means of two groups when the variances are unknown and assumed to be equal.