Which of the Following Statements Is False

question 22

Multiple Choice

Which of the following statements is false?

• A) Managers are much less committed to dividend payments than to share repurchases.
• B) Share repurchases are a credible signal that the shares are under-priced, because if they are over-priced a share repurchase is costly for current shareholders.
• C) While an increase of a firm's dividend may signal management's optimism regarding its future cash flows, it might also signal a lack of investment opportunities.
• D) Managers will clearly be more likely to repurchase shares if they believe the stock to be under-valued.

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Definitions:

Abdomen

The part of the body containing the digestive organs; located between the chest and pelvis.

Upper Buttocks

The upper region of the posterior part of the body that lies between the lower back and the lower part of the pelvis.

Polyunsaturated Fats

A type of dietary fat found in foods like nuts, seeds, and fish, beneficial for heart health when consumed in moderation.

Saturated Fats

Fats that contain no double bonds between carbon molecules because they are saturated with hydrogen molecules, commonly found in animal fats and some plant oils.