Assuming No Market Imperfections,which One of the Following Would Not

question 68

Multiple Choice

Assuming no market imperfections,which one of the following would not be expected to have an effect on share price?

• A) Dividend declaration and payment
• B) Stock repurchase
• C) Stock dividend
• D) Stock split

---

Definitions:

Normative Economic Statement

A subjective statement that expresses an opinion or a value judgment about what ought to be, rather than what is.

Can Be Verified

Indicates that a certain piece of information, claim, or data can be checked and confirmed for accuracy or truthfulness.

Positive Economic Statement

An objective statement based on empirical evidence that describes the world as it is. These statements can be tested and validated through observation.

Marginal Tax Rates

The rate at which tax is charged on an additional dollar of income, which can vary based on income levels and tax brackets.