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johnpaech johnpaech
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6 years ago
Which of the following statements is FALSE?
A) The total payout model allows us to ignore the firm's choice between dividends and share repurchases.
B) By repurchasing shares, the firm increases its share count, which decreases its earning and dividends on a per-share basis.
C) The total payout model discounts the total payouts that the firm makes to shareholders, which is the total amount spent on both dividends and share repurchases.
D) In the dividend discount model, we implicitly assume that any cash paid out to the shareholders takes the form of a dividend.
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
Authors:
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pbrown223pbrown223
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6 years ago
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johnpaech Author
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#2
6 years ago
You took a load off my back, thanks for answering correctly
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