Which of the Following Statements Is Correct

question 45

Multiple Choice

Which of the following statements is correct?

• A)If a firm repurchases some of its stock in the open market, then shareholders who sell their stock for more than they paid for it will be subject to capital gains taxes.
• B)An open-market dividend reinvestment plan will be most attractive to companies that need new equity and would otherwise have to issue additional shares of common stock through investment bankers.
• C)Stock repurchases tend to reduce financial leverage.
• D)If a company declares a 2-for-1 stock split, its stock price should roughly double.

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Definitions:

Psychographic Motivations

Psychological factors that influence an individual's behavior and preferences, such as values, beliefs, and lifestyle.

Big Data User

Refers to individuals or organizations that analyze and interpret large volumes of diverse data to uncover patterns, correlations, market trends, or customer preferences.

Active Customers

Consumers who actively engage with a brand or product through purchases, feedback, and participation in loyalty programs.

Amazon

A global e-commerce and technology company offering a wide range of products and services, including online retail, digital streaming, and artificial intelligence technologies.