Which of the Following Statements Is Correct

question 73

Multiple Choice

Which of the following statements is correct?

• A) Investors rightly prefer repurchases because the reduced number of shares increases earnings per share.
• B) Companies with large repurchase programs usually finance them by a cut in dividends.
• C) Companies pay out as dividends whatever is left over after making needed capital investments.
• D) A stock repurchase does not increase stock price but it does avoid the fall in price that would occur on the ex-dividend date.

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Definitions:

Unfamiliar Situation

A scenario or environment that is not known or recognized, often leading to feelings of discomfort, anxiety, or curiosity.

Attachment Theory

A psychological model that explains the dynamics of long-term interpersonal relationships between humans, starting from infancy.

John Bowlby

A British psychologist known for his work in the development of attachment theory, which emphasizes the importance of secure emotional bonds between children and their caregivers.

Contact Comfort

The psychological and physical benefits derived from close physical contact, such as cuddling or hugging.