Which of the Following Statements Is False

question 62

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:

Over The Telephone

A mode of communication or interaction that occurs through voice calls using telephones.

Increased

Refers to a quantity or condition becoming larger in size, number, value, strength, or intensity.

Decreased

Becoming smaller or less; a reduction in size, quantity, or intensity.

Bystander Intervention Effect

The phenomenon in which the presence of others discourages an individual from intervening in an emergency situation.