Which of the Following Statements Is Most Correct

question 47

Multiple Choice

Which of the following statements is most correct?

• A) Stock repurchases can be used by firms to defend against hostile takeovers since they increase the proportion of debt in a firm's capital structure.
• B) After a 3-for-1 stock split, a company's price per share will fall and its number of shares outstanding will rise.
• C) Investors can interpret a stock repurchase by a firm as a signal that the firm's managers believe the stock is underpriced.
• D) Both statements a and b are correct.
• E) All of the statements above are correct.

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Definitions:

Self-serving Bias

A common tendency to attribute one's successes to personal traits and failures to external factors, protecting self-esteem.

Reciprocal Determinism

The theory proposing that an individual's behavior is both influenced by and influences their personal factors and the environment.

High Self-esteem

A positive overall evaluation of oneself, characterized by feelings of self-worth and confidence.

Unconditional Positive Regard

A therapeutic concept in which a clinician offers an unwavering, nonjudgmental acceptance and support of a client, regardless of what the client says or does.