Which of the following statements is FALSE?
A)A common approximation is to assume that in the long run,dividends will grow at a constant rate.
B)The dividend each year is the firm's earnings per share (EPS)multiplied by its dividend payout rate.
C)There is a tremendous amount of uncertainty associated with any forecast of a firm's future dividends.
D)During periods of high growth,it is not unusual for firms to pay out 100% of their earnings to shareholders in the form of dividends.

Question

Quizplus · Accepted Answer

During periods of high growth, firms often reinvest their earnings in the business rather than pay out dividends. It is not usual for them to pay out 100% of earnings as dividends during such periods.

Which of the Following Statements Is FALSE