Which of the Following Statements Is CORRECT

question 45

Multiple Choice

Which of the following statements is CORRECT?

• A) If a firm repurchases some of its stock in the open market,then shareholders who sell their stock for more than they paid for it will be subject to capital gains taxes.
• B) An open-market dividend reinvestment plan will be most attractive to companies that need new equity and would otherwise have to issue additional shares of common stock through investment bankers.
• C) Stock repurchases tend to reduce financial leverage.
• D) If a company declares a 2-for-1 stock split,its stock price should roughly double.
• E) One advantage of adopting the residual dividend model is that this makes it easier for corporations to meet the requirements of Modigliani and Miller's dividend clientele theory.

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Definitions:

Rapid Pace

Describes a situation or process that is moving or happening very quickly or in a short time span.

Web-based Improvements

Enhancements or upgrades made to websites or online services to improve user experience and functionality.

Integrate

To combine or bring together various elements into a unified whole, enhancing functionality or efficiency.

Real-time CRM

Customer relationship management processes and technologies that allow businesses to interact with customers promptly and as events happen.