Question: Which statement about equity/equity investing is FALSE ? A rising risk premium raises the cost of equity for a company A stock dividend, opposed to

Which statement about equity/equity investing isFALSE?

  1. A rising risk premium raises the cost of equity for a company
  2. A stock dividend, opposed to a cash dividend, dilutes the ownership of a company
  3. The value of a company is the present value of its future profits
  4. Equity investing is riskier than bond investing due to the secondary, residual nature of equity cash flow distributions to investors

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