A company conducts the following capital payout and raising policies. Assume that there are no taxes, no signalling effects and no transaction costs. Which one of the following statements is NOT correct?

a.

Cash dividends mean that shareholders receive money.

b.

15% stock buy-back will decrease the number of shares by 15%.

c.

1 for 6 rights issue at a subscription price of $2 when the pre-announcement stock price was $5, will increase the number of shares by 16.67% and decrease the share price by 8.57%.

d.

1 for 3 bonus issue will increase the number of shares by 33.33% and decrease the share price by 25%.

e.

7 for 4 stock split will increase the number of shares by 57.14% and decrease the share price by 75%.