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:

Phonemes

The smallest units of sound in a language that can distinguish one word from another in a specific linguistic context.

Story Grammars

The structure and rules guiding the organization and sequencing of narrative elements in stories and narratives.

Variables

Elements, features, or factors that can change and affect the outcomes of scientific experiments or studies.

Units Of A Story

Basic elements that constitute a narrative, including setting, characters, plot, conflict, and resolution.