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.

---

Definitions:

Preschoolers

Children in the age group typically between 3 to 5 years old, just before they enter formal schooling.

Imaginary Creatures

Beings conceived in the mind that do not exist in the physical world, often found in mythology, folklore, or fantasy.

Inductive

Characteristic of disciplinary methods, such as reasoning, that try to teach an understanding of the principles behind parental demands.

Disciplinary Measures

Strategies or actions implemented to correct or manage behavior, often used in educational, organizational, or parental contexts to enforce rules and promote desired behaviors.