Which of the Following Statements Is True

question 12

Multiple Choice

Which of the following statements is true?

• A)Both cash dividends and share repurchases will cause a firm's debt-equity ratio to decrease.
• B)Both share repurchases and cash dividend payments reduce firm size.
• C)Share repurchases reduce firm size while cash dividend payments have no effect on the size of a firm.
• D)Both B and C are true statements.

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Definitions:

White

Typically refers to a color perceived by the eye when viewing a combination of all the colors of visible light in full saturation.

Additive

A substance added to another substance to alter or improve its qualities, such as food additives to enhance flavor or preserve freshness.

Dichromatic

Having two colors; in vision science, it refers to a form of color blindness in which a person can distinguish only two of the three basic color channels.

Subtractive Color Mixing

A process by which colors are created by absorbing or filtering out parts of the light spectrum, as seen in mixing pigments in paints.