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Which of the following statements is FALSE? i) The financial manager faces a trade-off decision between dividend payout and retaining earnings for reinvestment. ii) Firms
Which of the following statements is FALSE? i) The financial manager faces a trade-off decision between dividend payout and retaining earnings for reinvestment. ii) Firms are required to pay dividends every quarter. iii) When using the discounted cash flow model for stock valuation, the investor forecasts future free cash flows instead of future dividends. iv) Managerial flexibility (i.e. option) in investment decisions has positive value. O A. i and ii O B. ii and iv O C.ii OD. ii and
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