Which of the Following Statements Is FALSE

question 14

Multiple Choice

Which of the following statements is FALSE?

• A)While firms do still pay dividends,substantial evidence shows that many firms have recognized their tax disadvantage.
• B)The fact that firms continue to issue dividends despite their tax disadvantage is often referred to as the dividend puzzle.
• C)At the end of the 1990s,dividend payments exceeded the value of repurchases for U.S.industrial firms.
• D)While evidence is indicative of the growing importance of share repurchases as a part of firms' payout policies,it also shows that dividends remain a key form of payouts to shareholders.

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Definitions:

Test Statistic F

A specific form of the test statistic used in ANOVA to determine if there are significant differences between the means of three or more groups.

Population Means

The average value of a characteristic within a total population.

ANOVA Table

A table used to display the sources of variation in an analysis of variance, which helps in identifying the impact of one or more factors by comparing means.

P-value

The probability of observing a test statistic as extreme as, or more extreme than, the value observed, under the null hypothesis.