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:

Major Organic Product

The predominant compound produced through an organic reaction, usually of greatest interest or utility.

Cyano Substituent

A cyano substituent refers to a group containing a carbon triple-bonded to a nitrogen atom (-C≡N) attached to a molecular framework.

Aromatic Ring

A cyclic molecule with conjugated pi electrons that exhibits enhanced stability, typified by the benzene ring.

Deactivator

A chemical group or substituent attached to an aromatic ring that decreases its reactivity in electrophilic aromatic substitution reactions.