Which of the Following Statements Is FALSE

question 76

Multiple Choice

Which of the following statements is FALSE?

• A)Managers are much less committed to dividend payments than to share repurchases.
• B)Share repurchases are a credible signal that the shares are underpriced,because if they are over-priced a share repurchase is costly for current shareholders.
• C)While an increase of a firm's dividend may signal management's optimism regarding its future cash flows,it might also signal a lack of investment opportunities.
• D)Managers will clearly be more likely to repurchase shares if they believe the stock to be under-valued.

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Definitions:

Movement Illusion

An optical illusion where a static image appears to be moving due to the cognitive effects of interacting color contrasts and shape position.

Texture Gradient

A visual cue used to convey depth in an image, suggesting that an object's texture becomes denser and finer as distance increases.

Brightness

Brightness refers to the perception of the intensity of the light emitted or reflected by an object, influencing how light or dark the object appears.

Linear Perspective

A system of creating an illusion of depth on a flat surface, wherein parallel lines converge at a single point known as the vanishing point.