Answer the following statements true (T) or false (F)

1. Behavioral finance is a growing body of research that anomalies that are not consistent with the efficient markets theory.
2. The constant growth model is an approach to dividend valuation that assumes a constant future dividend.
3. The constant growth model is an approach to dividend valuation that assumes that dividends grow at a constant rate indefinitely.
4. Any action taken by a financial manager that increases risk will also increase the required return.
5. An action on the part of a firm that increases the level of expected cash flows without a corresponding increase in risk should reduce share value; an action that reduces the level of expected cash flows without a corresponding decline in risk should increase share value.


1. TRUE
2. FALSE
3. TRUE
4. TRUE
5. FALSE

Business

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Answer the following statement true (T) or false (F)

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