Quiz Ch 17 – T/F Stock Repurchases and Share Price Impact
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
True or false: Stock repurchases often lead to a decrease in the share price.
True or false: Stock repurchases often lead to a decrease in the share price.
True or false: Stock split announcements are often seen by investors as signals of management’s positive outlook for the future.
True or false: Stock splits result in price changes, whereas stock dividends do NOT affect stock prices.
True or false: Delaying the realization of capital gains results in a reduced present value of the tax liability.
True or false: A three-for-two stock split involves providing each shareholder with one additional share for every two shares they currently have.
True or false: Tender offers can involve fluctuating share repurchase prices.
What does a policy of dividend ‘smoothing’ involve?
When does a stock go ex-dividend in relation to the record date?
Which is correct about stock dividends and stock splits?
Why could MM’s stance differ from that of the XYZ Corp. manager, who believes a dividend increase will enhance the stock price due to the dividend-discount model, and what causes this difference in perspective?