Biology Forums - Study Force

Which of the statements below is FALSE?
A) The dividend models (growth or constant dividend) appeal to a fundamental concept of financial assets, that is, the value of the financial asset is determined by the future cash flow the owner is entitled to while holding the asset.
B) Lack of a dividend pattern is not a problem for the dividend models to work.
C) A firm's dividend in 2008 was less than its dividend in 2003. This means that the estimated growth rate is negative, and this produces a negative expected return.
D) Shortcomings of the dividend pricing models suggest that we need a pricing model that is more inclusive and that can estimate expected returns for stocks without the need for a stable dividend history.

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Thanks ^-^