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:

Surgically Removed

Refers to the extraction or elimination of tissues, organs, or other bodily structures via operative or surgical procedures.

Placenta

A critical organ that grows in the uterus throughout pregnancy, it ensures the fetus receives vital nutrients and oxygen, simultaneously expelling waste.

Secondhand Cigarette Smoke

Exposure to smoke from burning tobacco products used by others, can lead to health issues in non-smokers.

Fetal Development

Refers to the stages of growth and development of a fetus from the embryonic stage until birth, encompassing various physiological and anatomical changes.