Here are several "facts" about typical corporate dividend policies. Which are true and which are false?
a. The vast majority of companies pay out cash each year in the form of a dividend or a stock repurchase.
b. Companies decide each year's dividend by looking at their capital expenditure requirements and then distributing whatever cash is left over.
c. The share price generally falls on the dividend payment date.
d. Managers often increase dividends temporarily when earnings are unexpectedly high for a year or two.
e. Companies undertaking substantial share repurchases usually finance them with an offsetting cut in cash dividends.
f. A company that declares a 10% stock dividend gives each shareholder 1 additional share for each 10 shares that he or she currently owns.