Which of the Following Statements Is NOT Correct

question 3

Multiple Choice

Which of the following statements is NOT correct?

• A) After a 3-for-1 stock split, a company's price per share should fall, but the number of shares outstanding will rise.
• B) Investors can interpret a stock repurchase program as a signal that the firm's managers believe the stock is undervalued.
• C) Companies can repurchase shares to distribute large inflows of cash, say from the sale of a division, to stockholders without paying cash dividends.
• D) Stockholders pay no income tax on dividends if the dividends are used to purchase stock through a dividend reinvestment plan.
• E) Stock repurchases can be used by a firm as part of a plan to change its capital structure.

---

Definitions:

Procedural Memory

A type of long-term memory that involves the recall of how to perform tasks such as walking, talking, or riding a bike, often without conscious thought.

Erectile Disorders

Medical conditions characterized by the persistent difficulty to achieve or maintain an erection sufficient for satisfactory sexual activity.

Oral Medications

are medicines taken by mouth to be absorbed through the lining of the stomach or intestine into the bloodstream for systemic effects.

Neuronal Stimulation

The process by which neurons are activated through various methods, leading to their firing and the communication of signals within the brain.