Question: Based on your understanding of stock repurchases, identify whether the following statement is true or false: When firms make distributions in the form of dividends,

Based on your understanding of stock repurchases, identify whether the following statement is true or false:
When firms make distributions in the form of dividends, the stock price falls by the value of dividends per share (DPS) distributed, but the overall shareholder wealth does not decrease.
This statement is because if a firm pays a dividend of $1 per share, the price per share of the firms stock will also fall by $1 to any arbitrage opportunities.

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