Which of the Following Statements Is Correct

question 57

Multiple Choice

Which of the following statements is correct?

• A) An open-market dividend reinvestment plan will be most attractive to companies that need new equity and would otherwise have to issue additional shares of common stock through investment bankers.
• B) Stock repurchases tend to reduce financial leverage.
• C) If a company declares a 2-for-1 stock split, its stock price should roughly double.
• D) One advantage of adopting the residual dividend policy is that this makes it easier for corporations to meet the requirements of Modigliani and Miller's dividend clientele theory.
• E) If a firm repurchases some of its stock in the open market, then shareholders who sell their stock for more than they paid for it will be subject to capital gains taxes.

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Definitions:

Mental Health

The state of well-being in which an individual recognizes their own abilities, can cope with the normal stresses of life, can work productively, and is able to contribute to their community.

Pseudoetic

is a term pertaining to a misleading or false understanding of cultural phenomena from an outside perspective.

Indigenous Concepts

Ideas, beliefs, and practices that originate from and are inherent to the traditions and cultures of indigenous peoples.

External to the Culture

Pertains to influences, individuals, or practices that originate from outside a specific culture or society.