Which One of the Following Statements Is NOT True About

question 83

Multiple Choice

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

• A) Dividend stays constant over time.
• B) The cash flow pattern resembles a perpetuity with a constant cash flow.
• C) Dividend payment pattern shows constant growth over time.
• D) There is no growth in dividends over time.

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Definitions:

Board of Directors

A group of elected or appointed members who jointly oversee the activities of a company or organization.

Efficient Market Hypothesis

The theory that all existing information is already reflected in securities prices, thus making it impossible to consistently achieve higher returns.

Dissemination

The process of spreading information, knowledge, or ideas to a large number of people.

Executive Stock Option

A privilege, sold by one party to another, that gives the buyer the right, but not the obligation, to buy (call) or sell (put) a stock at an agreed-upon price within a certain period or on a specific date.