Which of the Following Statements Is False

question 42

Multiple Choice

Which of the following statements is false?

• A) With a stock dividend, a firm does not pay out any cash to shareholders. As a result, the total market value of the firm's assets and liabilities, and therefore of its equity, is unchanged.
• B) If the price of the stock falls too low, a company can engage in a reverse split and reduce the number of shares outstanding.
• C) Stock dividends of 50% or higher are generally referred to as stock splits.
• D) Rather than pay a dividend using cash or shares of its own stock, a firm can also distribute shares of a subsidiary in a transaction referred to as an off-shoot.

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Definitions:

Translating

The process of converting written or spoken content from one language into another, ensuring the message is accurately conveyed.

Condense Meaning

The process of making information more concise and straightforward while retaining its essential points.

Paraphrase

The process of rewording or rephrasing a text or segment of speech to clarify its meaning without changing the intended message.

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