Which of the Following Statements Is False

question 39

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 repurchasing 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:

Merchant

A person who is engaged in the purchase and sale of goods. Under the Uniform Commercial Code, a person who deals in goods of the kind involved in the sales contract; for further definitions, see UCC 2–104.

Original Offer

The initial proposal or bid made during negotiations or contractual discussions, from which subsequent offers may be derived.

New Terms

Newly established conditions or concepts introduced within a specific context, such as agreements or industries.

Refined Grains

Processed grains that have had the germ and bran removed, which lowers their fiber content and nutritional value.