Which of the Following Statements Is FALSE

question 76

Multiple Choice

Which of the following statements is FALSE?

• A)Managers are much less committed to dividend payments than to share repurchases.
• B)Share repurchases are a credible signal that the shares are underpriced,because if they are over-priced a share repurchase is costly for current shareholders.
• C)While an increase of a firm's dividend may signal management's optimism regarding its future cash flows,it might also signal a lack of investment opportunities.
• D)Managers will clearly be more likely to repurchase shares if they believe the stock to be under-valued.

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Definitions:

Autonomous Dimensions

Refers to the various independent factors or aspects in systems or processes that operate or change without external control.

Team-Oriented

An approach or work culture that emphasizes collaboration, teamwork, and collective effort towards common objectives.

Role Congruity Theory

A theory suggesting that individuals are perceived more favorably when their behaviors are congruent with the roles traditionally associated with their social groups.

Underrepresentation

The inadequate or disproportionately low representation of a particular group or category within a certain context or field.