Which of the Following Statements Is Correct

question 57

Multiple Choice

Which of the following statements is correct?

• A) 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.
• B) Stock repurchases tend to reduce financial leverage.
• C) If a company declares a 2-for-1 stock split, its stock price should roughly double.
• D) One advantage of adopting the residual dividend policy is that this makes it easier for corporations to meet the requirements of Modigliani and Miller's dividend clientele theory.
• E) 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.

Comprehend the essential elements of effectively concluding a speech.

Understand the role and implementation of visual aids in enhancing communication in presentations.

Grasp the significance of opening a presentation effectively to engage the audience immediately.

Acknowledge the differences between oral and written communication strategies.

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Definitions:

Null Hypothesis

A hypothesis that states there is no statistical significance between the two specified populations, and any observed difference is due to sampling or experimental error.

Multinomial Population

A population in statistics that can fall into more than two categories.

Z Test

A statistical test used to determine if there is a significant difference between the mean of a sample and the mean of a population.

Proportions

The fraction of a whole expressed as a percentage, ratio, or fraction, representing parts of a larger quantity or population.