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:

High Levels

Refers to a significant or above-average degree or quantity in a particular context, such as high levels of pollution or high levels of performance.

Inflation

The general rise in prices in an economy.

Investment Opportunity

A situation or scenario that offers the potential for investment gains, either through income generation or asset appreciation.

Gross Domestic Product

The total monetary value of all goods and services produced within a country's borders in a specific time period.