Which Statement Is Correct

question 88

Multiple Choice

Which statement is correct?

• A)Stock dividends tend to reduce agency costs related to shareholders but stock repurchases do not.
• B)It is relatively easy to determine whether or not a firm has completed a planned stock repurchase.
• C)Fixed stock repurchases allow managers to repurchase shares only when they feel those shares are undervalued.
• D)Stock dividends may come at the expense of forgoing positive net present value projects.
• E)Stock repurchases send the exact same signals to investors as cash dividends send.

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Definitions:

Tests Of Significance

Statistical tests used to determine whether the results of a study are likely to be due to chance or represent genuine effects.

Arithmetic Mean

The sum of a set of numbers divided by the count of numbers in the set, commonly known as the average.

Effect Size

An objective, standardized way of describing the strength of the independent variable’s influence on the dependent variable.

P Value

A statistical measure that helps scientists determine the significance of their research results.