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8. Which of the following statements is most correct? A firm that pays higher dividends will be worth more than a similar company that pays
8. Which of the following statements is most correct?
- A firm that pays higher dividends will be worth more than a similar company that pays lower dividends.
- The par value of a share of common stock is $1000, just like bonds.
- The DCF stock price model assumes constant, long-term growth in dividends.
- Issuing new common stock is the only way that firms can increase their equity.
- Even over the long term, there is no necessary relationship between sales, earnings, and dividends.
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