Which of the Following Statements Is FALSE

question 14

Multiple Choice

Which of the following statements is FALSE?

• A)While firms do still pay dividends,substantial evidence shows that many firms have recognized their tax disadvantage.
• B)The fact that firms continue to issue dividends despite their tax disadvantage is often referred to as the dividend puzzle.
• C)At the end of the 1990s,dividend payments exceeded the value of repurchases for U.S.industrial firms.
• D)While evidence is indicative of the growing importance of share repurchases as a part of firms' payout policies,it also shows that dividends remain a key form of payouts to shareholders.

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Definitions:

Asymptotic

The quality of the normal curve such that the tails never touch the horizontal axis.

Z Scores

An indicator that quantifies the distance of a particular value from the mean of a dataset, using standard deviations as the unit of measure.

Z Score

A statistical measurement that describes a value's relationship to the mean of a group of values, measured in terms of standard deviations.