Which One of These Statements Is True

question 47

Multiple Choice

Which one of these statements is true?

• A)Transaction and issue costs have no effect on dividend policy.
• B)If the shareholders of an acquired company receive shares in the acquirer rather than cash,they avoid paying taxes.
• C)Stock dividends provide shares that can be used for the exercise of shares under an employee stock option plan.
• D)Individual investors desiring current income need to invest solely in high-dividend stocks.
• E)In the United States,stock sales have exceeded stock repurchases every year since 2008.

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Definitions:

Sig

A term used in prescriptions, derived from "Signa," indicating the dose, frequency, and manner of taking a medication.

Against

In opposition to or in competition with; denotes a contrasting or conflicting situation.

Milliliter

A unit of volume in the metric system, equivalent to one-thousandth of a liter, commonly used to measure liquids.

DC

Direct Current, a type of electrical current that flows in one direction only, used in various applications including electronics and batteries.