Which of the Following Statements Is Most Correct

question 34

Multiple Choice

Which of the following statements is most correct?

• A) One reason that companies tend to avoid stock repurchases is that dividend payments are taxed more favorably than stock repurchases.
• B) One advantage of dividend reinvestment plans is that they allow shareholders to avoid paying taxes on the dividends that they choose to reinvest.
• C) If a company announces a 2-for-1 stock split and the overall value of the firm remains unchanged, the company's stock price must have doubled.
• D) All of the statements above are correct.
• E) None of the statements above is correct.

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Definitions:

Universal Generalization

A conclusion drawn about all members of a group based on observations or evidence from only some members of the group.

Existential Instantiation

A rule of inference used in logic to deduce that if there exists an element in a domain with a certain property, one can infer the existence of a specific example of that element.

Universal Instantiation

A logical rule that allows for the conclusion that what is true of all members of a class is true for any specific member.

Quantifier Negation

The logical operation of negating the quantifiers within a statement, which often changes the scope or meaning of the statement.