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.

---

Definitions:

Basal Metabolic Rate

The amount of calories needed to maintain bodily functions while at rest, referred to as metabolism.

Social and Cultural Factors

These refer to the influences that derive from the society and culture one belongs to, affecting behaviors, beliefs, and attitudes.

Fried Caterpillars

A dish consisting of caterpillars that have been cooked in oil, considered a delicacy or traditional food in some cultures.

Grilled Dog Meat

Cooked meat from a dog, consumed in certain cultures and regions, which is a controversial and sensitive topic due to ethical concerns.