Which of the following statements is NOT TRUE? Select one: O a. After a 3-for-1 stock...

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Which of the following statements is NOT TRUE? Select one: O a. After a 3-for-1 stock split, a company's price per share should fall but the number of shares outstanding will increase. O b. Shareholders have to pay income tax on dividends used to purchase stock through a dividend reinvestment plan (DRIP) even though no cash was received. c. The clientele effect suggests that management should maintain a stable dividend policy O d. After a share repurchase the stock price should fall since the value of the company is now lower by the dollar amount of the share repurchase. Which of the following statements is TRUE? Select one: C a. If a firm repurchases some of its stock in the open market, then shareholders who sell their stock for more than what they paid will have a capital gain. O 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. Oc. Investors may interpret a stock repurchase as a signal that the firm's managers believe the stock is overvalued. Od. If a company declares a 2-for-1 stock split, its stock price should roughly double. Which of the following statements is NOT TRUE? Select one: O a. After a 3-for-1 stock split, a company's price per share should fall but the number of shares outstanding will increase. O b. Shareholders have to pay income tax on dividends used to purchase stock through a dividend reinvestment plan (DRIP) even though no cash was received. c. The clientele effect suggests that management should maintain a stable dividend policy O d. After a share repurchase the stock price should fall since the value of the company is now lower by the dollar amount of the share repurchase. Which of the following statements is TRUE? Select one: C a. If a firm repurchases some of its stock in the open market, then shareholders who sell their stock for more than what they paid will have a capital gain. O 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. Oc. Investors may interpret a stock repurchase as a signal that the firm's managers believe the stock is overvalued. Od. If a company declares a 2-for-1 stock split, its stock price should roughly double.

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The detailed answer for the above question is provided below Answer to question 1 The statement c Af... View the full answer