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Which of the following statements is FALSE? A. A firm can only pay out its earnings to investors or reinvest their earnings. B. Successful young
Which of the following statements is FALSE?
A. A firm can only pay out its earnings to investors or reinvest their earnings. |
B. Successful young firms often have high initial earnings growth rates. |
C. Estimating dividends, especially for the distant future, is difficult. |
D. According to the constant dividend growth model, the value of the firm depends on the current dividend level, divided by the equity cost of capital plus the growth rate. |
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