Which of the Following Statements Is False

Which of the following statements is false?

A) Future dividend payments and stock prices are not known with certainty; rather these values are based on the investor's expectations at the time the stock is purchased.
B) The capital gain is the difference between the expected sale price and the purchase price of the stock.
C) The sum of the dividend yield and the capital gain rate is called the total return of the stock.
D) We divide the capital gain by the expected future stock price to calculate the capital gain rate.

Correct Answer:

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