Question: 2 6 Multiple Choice 1 3 points ( Lecture 1 2 - Payout Policy ) Which of the following statements is FALSE? Share repurchases are

26
Multiple Choice
13 points
(Lecture 12-Payout Policy)
Which of the following statements is FALSE?
Share repurchases are a credible signal that the shares are underpriced, because if they are overpriced a share repurchase is costly for current shureholders
While an increase of a firm's dividend may signal management's optimism regarding its future cash flows it might also signal a lack of investment opportuaniti
Managers are much less committed to dividend payments than to share repurchases.
None of the above
2 6 Multiple Choice 1 3 points ( Lecture 1 2 -

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