Which of the Following Statements Is FALSE

question 65

Multiple Choice

Which of the following statements is FALSE?

• A)In perfect capital markets,holding fixed the investment policy of a firm,the firm's choice of dividend policy is irrelevant and does not affect the initial share price.
• B)In a perfect capital market,when a dividend is paid,the share price drops by the amount of the dividend when the stock begins to trade ex-dividend.
• C)In perfect capital markets,an open market share repurchase has no effect on the stock price,and the stock price is the same as the ex-dividend price if a dividend were paid instead.
• D)In perfect capital markets,investors are indifferent between the firm distributing funds via dividends or share repurchases.By reinvesting dividends or selling shares,they can replicate either payout method on their own.

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Definitions:

XXY

A chromosomal condition where an individual has an extra Y chromosome, typically resulting in Klinefelter syndrome, characterized by physical and sometimes cognitive features.

Sex Chromosomes

Chromosomes that determine the sex of an organism, typically referred to as X and Y in many species.

Jacobs Syndrome

A genetic disorder characterized by the presence of an extra Y chromosome in males (47,XYY karyotype).

XYY Genotype

A chromosomal arrangement in humans where a male has an extra Y chromosome, resulting in the 47,XYY karyotype.