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.

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Definitions:

Tobacco Addiction

The compulsive dependence on nicotine and tobacco products, characterized by an inability to stop using them despite the known health risks.

Blood Alcohol Content

The measurement of the amount of alcohol in an individual's bloodstream, used to assess intoxication level.

Ethanol

A volatile, flammable, colorless liquid alcohol, commonly used as a fuel additive, in thermometers, and as the intoxicating ingredient of alcoholic beverages.

Telescoping

An accelerated progression towards addiction, observed in some individuals, particularly women, once they start engaging in addictive behaviors.