Which of the following statements concerning a stock market series is FALSE?
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A) |
The dividend yield on a stock can proxy the spread between the required rate of return and the growth rate of dividends. |
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B) |
The three components of the earnings multiplier are the current dividend, the growth rate in dividends, and the required rate of return. |
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C) |
The capacity utilization rate influences the operating profit margin. |
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D) |
The price to earnings (P/E) ratio is positively related to the growth in dividends. |
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The correct answer was B) The three components of the earnings multiplier are the current dividend, the growth rate in dividends, and the required rate of return.
The three components of the earnings multiplier are the dividend payout ratio, the growth rate in dividends, and the required rate of return. |