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:

Health Policy

A set of decisions, plans, and actions undertaken to achieve specific healthcare goals within a society.

Health-Related Goals

Objectives set to improve one's health status, such as exercising regularly or eating a balanced diet.

Public Policy

Principles and guidelines that govern actions taken by the government to address societal issues.

Americans with Disabilities Act

A civil rights law enacted in 1990 in the United States that prohibits discrimination against individuals with disabilities in all areas of public life.