A firm that pays higher dividends will be worth more than a

Question

Which of the following statements is most correct?

1. A firm that pays higher dividends will be worth more than a similar company that pays lower dividends.
2. The par value of a share of common stock is $1000, just like bonds.
3. The DCF stock price model assumes constant, long-term growth in dividends.
4. Issuing new common stock is the only way that firms can increase their equity.
5. Even over the long term, there is no necessary relationship between sales, earnings, and dividends.