Which of the Following Statements Is FALSE

question 58

Multiple Choice

Which of the following statements is FALSE?

• A)If firms smooth dividends,the firm's dividend choice will contain information regarding management's expectations of future earnings.
• B)Because of the increasing popularity of repurchases,firms cut dividends much more frequently than they increase them.
• C)Announcing a share repurchase today does not necessarily represent a long-term commitment to repurchase shares.
• D)While cutting the dividend is costly for managers in terms of their reputation and the reaction of investors,it is by no means as costly as failing to make debt payments.

---

Definitions:

Raw Materials

Basic materials used in the production process, not yet transformed into final products.

Traditional Environment

A conventional business or work setting that adheres to long-established methods or practices.

Pull Manufacturing

A production method where production is based on customer demand rather than forecasting, utilizing techniques to only produce what is needed when it's needed.

Small Batch Sizes

Refers to producing goods in limited quantities, often to meet specific orders or reduce waste.