Which of the Following Statements Is NOT Correct

question 3

Multiple Choice

Which of the following statements is NOT correct?

• A) After a 3-for-1 stock split, a company's price per share should fall, but the number of shares outstanding will rise.
• B) Investors can interpret a stock repurchase program as a signal that the firm's managers believe the stock is undervalued.
• C) Companies can repurchase shares to distribute large inflows of cash, say from the sale of a division, to stockholders without paying cash dividends.
• D) Stockholders pay no income tax on dividends if the dividends are used to purchase stock through a dividend reinvestment plan.
• E) Stock repurchases can be used by a firm as part of a plan to change its capital structure.

---

Definitions:

Predation

An ecological interaction where one organism, the predator, kills and eats another organism, its prey.

Evolution by Natural Selection

A fundamental mechanism of evolution proposed by Charles Darwin, stating that organisms better adapted to their environment tend to survive and produce more offspring, leading to genetic changes in populations over time.

Giraffes

Tall, long-necked ungulates native to Africa, known for their height and distinctive coat patterns.

Neck Length

The measurement from the base of the skull to the base of the neck, significant in various biological and anthropological studies.