Which of the Following Statements Is CORRECT

question 26

Multiple Choice

Which of the following statements is CORRECT?

• A) If a company has a 2-for-1 stock split,its stock price should roughly double.
• B) Capital gains earned on shares repurchased are taxed less favorably than dividends,which is why companies typically pay dividends and avoid share repurchases.
• C) Very often,a company's stock price will rise when it announces that it plans to commence a share repurchase program.Such an announcement could lead to a stock price decline,but this does not normally happen.
• D) Stock repurchases increase the number of outstanding shares.
• E) The clientele effect is the best explanation for why companies tend to vary their dividend payments from quarter to quarter.

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Definitions:

User-Generated Content Sites

Online platforms where the content is created, shared, and curated by the users themselves, rather than by professional content creators.

Positive Reviews

Evaluations or assessments of a product, service, or performance that highlight its strengths and beneficial qualities.

Performance and Quality

Refers to the level of achievement or excellence in executing tasks or producing goods, often measured against known standards.

Online Personality

The character or persona an individual presents on the internet, particularly on social media platforms or online interactions.