Which of the Following Statements Is FALSE

question 69

Multiple Choice

Which of the following statements is FALSE?

• A)With a stock dividend,a firm does not pay out any cash to shareholders.As a result,the total market value of the firm's assets and liabilities,and therefore of its equity,is unchanged.
• B)If the price of the stock falls too low,a company can engage in a reverse split and reduce the number of shares outstanding.
• C)Stock dividends of 50% or higher are generally referred to as stock splits.
• D)Rather than pay a dividend using cash or shares of its own stock,a firm can also distribute shares of a subsidiary in a transaction referred to as a off-shoot.

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Definitions:

Lower-Nicotine Cigarettes

Cigarettes that are engineered to contain reduced levels of nicotine, potentially aiding in smoking reduction or cessation.

Addicted Smokers

Individuals who have developed a dependency on nicotine, making it difficult to quit smoking despite wanting to.

Media Influence

The impact that content, delivered via various media channels, can have on individuals’ thoughts, behaviors, and attitudes.

Media Exposure

The amount and variety of media content an individual consumes or is exposed to, including television, internet, and print.