Which of the Following Statements Is False

question 80

Multiple Choice

Which of the following statements is false?

• A) In perfect capital markets, holding fixed the investment policy of a firm, the firm's choice of dividend policy is irrelevant and does not affect the initial share price.
• B) In a perfect capital market, when a dividend is paid, the share price drops by the amount of the dividend when the stock begins to trade ex-dividend.
• C) In perfect capital markets, an open market share repurchase has no effect on the stock price, and the stock price is the same as the ex-dividend price if a dividend were paid instead.
• D) In perfect capital markets, investors are indifferent between the firm distributing funds via dividends or share repurchases. By reinvesting dividends or selling shares, they can replicate either payout method on their own.

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Definitions:

Self-esteem

Self-esteem refers to an individual's subjective evaluation of their own worth or value.

Authentic Self

Represents one's true, genuine identity, encompassing personal values, beliefs, and feelings.

Public Self

An image presented to others in social interactions.

Self-Conscious

The state of being overly aware of oneself, one's appearance, or actions, often leading to discomfort or awkwardness.