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 in a share repurchase are taxed less favorably than dividends; this explains 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.

---

Definitions:

Wrist

The joint connecting the forearm to the hand, consisting of eight small bones and allowing for a wide range of movement.

Compression

The application of pressure to part of the body or a data reduction technique that reduces the size of digital files by removing redundant information.

Skeleton Function

The role performed by the skeletal system, including supporting the body’s structure, protecting organs, and enabling movement.

Temperature Control

the process of monitoring and adjusting temperatures to maintain a desired level, important in various scientific and industrial processes as well as in preserving food.