Which of the Following Statements Is False

question 87

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 repurchase 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:

Transportation Costs

Expenses incurred in the process of moving goods from one location to another, including shipping, freighting, and logistics services.

Cash Terms

Refers to the conditions under which a transaction is made and settled in cash, rather than through credit or financing.

Assessed Valuation

The valuation placed on property by a public tax assessor for purposes of taxation.

Current Data

Refers to the most recent data available for analysis or decision-making processes.