Which Statement Is Correct

question 71

Multiple Choice

Which statement is correct?

• A)Cash dividends and stock repurchases are treated equally for tax purposes.
• B)In total dollars, cash dividends outweighed stock repurchases for the period 2003-2013.
• C)Many firms either ceased paying or decreased their dividends per share in response to the 2003 change in dividend taxation.
• D)Firms tend to prefer cash dividends over share repurchases for their flexibility and tax benefits.
• E)A non-dividend-paying firm is more apt to do a stock repurchase than to commence paying dividends.

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Definitions:

Productivity Improvement

The process of increasing the efficiency and effectiveness of a process, often by reducing waste and optimizing resources.

Output

The amount of goods or services produced by a process or system, serving as a measure of productivity and efficiency.

Operations Management

The specialization within management devoted to establishing and managing the production process and modifying business operations for the generation of goods or services.

Job Specialization

The process of focusing one's occupational concentration on a specific area of expertise, leading to increased efficiency and skill.