Which of the following statements concerning security valuation is FALSE（）

A. The liquidity risk of countries refers to the size and activity of the country's capital markets.

B. ROA times one minus the dividend payout ratio is the firm's sustainable growth rate.

C. If the firm's payout ratio is 40% , has a required return of 12% , and a dividend growth rate of 7%, the firm's price to earnings (P/E) ratio should be 8.