Question
Which of the following statements is NOT TRUE? Select one: a. After a 3-for-1 stock split, a company's price per share should fall but the
Which of the following statements is NOT TRUE?
Select one:
a. After a 3-for-1 stock split, a company's price per share should fall but the number of shares outstanding willincrease
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
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.
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