Which of the Following Statements Is Most Correct

question 4

Multiple Choice

Which of the following statements is most correct?

• A) If a company puts in place a 2-for-1 stock split, its stock price should roughly double.
• B) Share repurchases are taxed less favorably than dividends; this explains why companies typically pay dividends and avoid share repurchases.
• C) On average, a company's stock price tends to rise when it announces that it is initiating a share repurchase program.
• D) Statements a and b are correct.
• E) All of the statements above are correct.

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Definitions:

Sainte-Foy

A Romanesque church in Conques, France, known for its rich architectural detail and as a key stop on the pilgrimage route to Santiago de Compostela.

Santiago De Compostela

A city in northwestern Spain, known as the culmination point of the Camino de Santiago pilgrimage route, and the reputed burial site of Saint James the Great.

Tribunes

Elected officials in ancient Rome who were tasked with protecting the rights of the plebeians against patrician overreach.

Overflow Crowds

Large numbers of people exceeding the capacity of a venue or event, often gathering in additional spaces or outside to participate or observe.