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:

Embodied Agent

An AI system that interacts with the world through a physical body within its environment, often a robot or virtual character.

Optical Character Recognition

Technology that converts different types of documents, such as scanned paper documents or PDFs, into editable and searchable data.

Image Recognition

The ability of software to identify objects, places, people, writing, and actions in images.

Calculation

The process of determining a mathematical result or solving a numerical problem.