Which of the Following Statements Is NOT CORRECT

question 36

Multiple Choice

Which of the following statements is NOT CORRECT?

• A) Stock repurchases can be used by a firm as part of a plan to change its capital structure.
• B) After a 3-for-1 stock split,a company's price per share should fall,but the number of shares outstanding will rise.
• C) Investors may interpret a stock repurchase program as a signal that the firm's managers believe the stock is undervalued,or,alternatively,as a signal that the firm does not have many good investment opportunities.
• D) A company can repurchase stock to distribute a large one-time cash inflow,say from the sale of a division,to stockholders without having to increase its regular dividend.
• E) Stockholders pay no income tax on dividends if the dividends are used to purchase stock through a dividend reinvestment plan.

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Definitions:

Contingency Planning

The process of preparing for potential future events or emergencies to ensure effective responses.

Program Details

Specific information regarding the structure, components, and requirements of a particular program or initiative.

HR Forecasting

A strategic approach used by HR departments to anticipate future business demands for the workforce, ensuring the right number of people with the right skills are available when needed.

Reactive

Pertaining to a response after the fact, rather than proactively anticipating changes or challenges.