Which of the Following Statements Is NOT Correct

question 50

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.

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Definitions:

Motivator Factors

Elements of a job that can lead to satisfaction and motivate employees to higher performance, such as recognition, achievement, and personal growth.

Job Characteristics Model

A framework that suggests jobs can be designed with specific characteristics (skill variety, task identity, task significance, autonomy, and feedback) to enhance job satisfaction, motivation, and productivity.

Individual Differences

Variations or disparities among individuals in terms of traits, abilities, or characteristics.

Expectancy Model

A theory that suggests motivation is based on the expectation of desired outcomes and the value placed on those outcomes.