Which of the Following Statements Is NOT CORRECT

question 26

Multiple Choice

Which of the following statements is NOT CORRECT?

• A)Stock repurchases can be used by a firm as part of a plan to change its capital structure.
• B)After a 3-for-1 stock split, a company's price per share should fall, but the number of shares outstanding will rise.
• C)Investors can interpret a stock repurchase program as a signal that the firm's managers believe the stock is undervalued.
• D)Companies can repurchase shares to distribute large inflows of cash, say from the sale of a division, to stockholders without paying cash dividends.
• E)Stockholders pay no income tax on dividends if the dividends are used to purchase stock through a dividend reinvestment plan.

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Definitions:

Internship Positions

Opportunities for individuals, often students or recent graduates, to gain practical experience in their field of interest, typically for a determined period.

Hiring Process

The series of steps undertaken by an organization to recruit and select candidates for job positions, from job posting to final selection.

Claims

Assertions or statements made, usually in writing, that something is the case, often requiring proof or evidence.

Supporting Facts

Evidence or information provided to back up a statement, claim, or idea, enhancing its credibility.