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.

Identify the factors influencing the enforcement and satisfaction of court judgments.

Understand the concept of monopolistic competition and how it differs from other market forms.

Recognize the role and arguments for and against advertising in monopolistically competitive markets.

Identify the strategies monopolistically competitive firms use to gain market power and differentiate their products.

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Definitions:

Put Option

A put option is a financial contract that gives the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified period.

Call Option

An agreement that gives an investor the right, but not the obligation, to buy a stock, bond, commodity, or other instrument at a specified price within a specific time period.

Stock Price

The cost of purchasing a share of a company, which can fluctuate based on market conditions and company performance.

Strike Price

The price at which the holder of an option can buy (in the case of a call option) or sell (in the case of a put option) the underlying security or commodity.