According to Sam, Stock S is better because it provides an annual dividend of P5. According to John, Stock J is better because it provides an earnings per share of P20. Which of the following statements is FALSE? * a. Without the valuation of both shares along with the expected growth rates, we cannot say which stock is better. b. John is correct because P20 is more than P5. c. John considers the overall return of his investment, whether paid out or not. d. Sam believes in the Dividend Relevance Theory.

Microeconomics A Contemporary Intro
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ISBN:9781285635101
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Chapter13: Capital, Interest, Entrepreneurship, And Corporate Finance
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According to Sam, Stock S is better because it provides an annual dividend of P5. According to John, Stock J is better because it provides an earnings per share of P20. Which of the following statements is FALSE? *

a. Without the valuation of both shares along with the expected growth rates, we cannot say which stock is better.
b. John is correct because P20 is more than P5.
c. John considers the overall return of his investment, whether paid out or not.
d. Sam believes in the Dividend Relevance Theory.

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