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:

Mixed Numbers

Numbers consisting of an integer and a proper fraction, representing a value between two whole numbers.

Lowest Terms

A fraction that cannot be reduced by any common divisor.

Fractions

Number expressions of one or more equal parts of whole units.

Improper Fractions

Improper fractions are fractions where the numerator (the top number) is greater than or equal to the denominator (the bottom number), representing a value equal to or greater than one.