Which of the Following Statements Is FALSE

question 38

Multiple Choice

Which of the following statements is FALSE?

• A)In perfect capital markets, holding fixed the investment policy of a firm, the firm's choice of dividend policy is irrelevant and does not affect the initial share price.
• B)In perfect capital markets, investors are indifferent between the firm distributing funds via dividends or share repurchases. By reinvesting dividends or selling shares, they can replicate either payout method on their own.
• C)In perfect capital markets, an open market share repurchase has no effect on the share price, and the share price is the same as the ex-dividend price if a dividend were paid instead.
• D)In a perfect capital market, when a dividend is paid, the share price drops by the amount of the dividend when the share begins to trade ex-dividend.

Identify and name the major products of organic reactions involving alcohols, halides, and nucleophilic substitution.

Analyze the efficiency and selectivity of different synthetic routes in organic chemistry.

Understand the role of reaction conditions and reagents in determining the major products of organic reactions.

Apply knowledge of organic chemistry to propose synthetic pathways for complex molecules.

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Definitions:

Market Price

The prevailing market price at which you can buy or sell an asset or service.

Cumulative Preferred Stock

A type of preferred stock that entitles shareholders to receive dividends in arrears before common stockholders can be paid dividends.

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation and a claim on part of the corporation's profits or losses.

Dividends Per Share

Dividends per share is a measure reflecting the amount of declared dividends for each share of common stock, revealing how much a company pays out in dividends relative to its share price.