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.

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Definitions:

Personality

refers to the combination of characteristics or qualities that form an individual's distinctive character, influencing behaviors and attitudes.

Employee Goal Achievement

The successful realization of objectives set by employees within their respective roles, contributing to personal satisfaction and organizational success.

Decision Quality

Refers to the effectiveness and appropriateness of a decision based on its outcomes, considering the information and processes used in making it.

Fastest Approach

The quickest method or strategy to achieve a specific objective.