Which of the Following Statements Is FALSE

question 69

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 a off-shoot.