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:

Change Agent

An individual or entity that acts as a catalyst for change, facilitating or implementing changes in organizations or societies.

Creative Thinker

An individual who has the ability to think in unique and unconventional ways to solve problems or generate new ideas.

Policy Administrator

An individual responsible for the implementation and management of policies within an organization.

Safety and Quality

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