Which of the Following Statements Is False

question 55

Multiple Choice

Which of the following statements is false?

• A) While firms do still pay dividends, substantial evidence shows that many firms have recognized their tax disadvantage.
• B) The fact that firms continue to issue dividends despite their tax disadvantage is often referred to as the dividend puzzle.
• C) At the end of the 1990s dividend payments exceeded the value of repurchases for U.S. industrial firms.
• D) While evidence is indicative of the growing importance of share repurchases as a part of firms' payout policies, it also shows that dividends remain a key form of payouts to shareholders.