I. ABC company repurchased its stock, this resulted in a downsized company. This is opposite to financial statement effects when common stocks are issued.

II. Preferred stock has preference over common stock in terms of liquidation and dividend payments.

III. If US dollar appreciates then ABC company's subsidiary in Europe will experience a decrease in earnings when translated to US dollars.

IV. Star Wars Co. employees have the option to purchase company's own stock at a fixed price called the exercise price or star track price.

True

False