Which of the Following Statements Is FALSE

question 58

Multiple Choice

Which of the following statements is FALSE?

• A)If firms smooth dividends,the firm's dividend choice will contain information regarding management's expectations of future earnings.
• B)Because of the increasing popularity of repurchases,firms cut dividends much more frequently than they increase them.
• C)Announcing a share repurchase today does not necessarily represent a long-term commitment to repurchase shares.
• D)While cutting the dividend is costly for managers in terms of their reputation and the reaction of investors,it is by no means as costly as failing to make debt payments.

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Definitions:

Low Arousal

A state characterized by reduced physiological and psychological activity and responsiveness.

Antisocial Personality Disorder

A psychological condition marked by a persistent tendency to ignore or infringe upon the rights of others over an extended period.

Frustration Tolerance

The individual's capacity to withstand frustration without developing maladaptive behaviors or emotional responses.

Impetuously

Acting or done quickly and without thought or care; moving forcefully or rapidly in an unrestrained manner.