Which of the Following Statements Is False

question 56

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 Canadian 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.

---

Definitions:

Least Costly

The most economical or budget-friendly option among a set of alternatives.

Elastic Demand

A situation in which the demand for a product is sensitive to price changes, indicated by a greater change in quantity demanded.

Labor Costs

The total amount of money businesses have to spend on paying their employees, including wages, salaries, and benefits.

Wage Rates

The amount of money paid per unit of time or output to an employee for labor.