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True / False Questions 42.Companies using a tender offer to repurchase

Question : True / False Questions 42.Companies using a tender offer to repurchase : 1409500

 

True / False Questions
 

42.Companies using a tender offer to repurchase shares typically offer a stock price greater than the current stock price. 
 
 

43.Firms can pay out cash to their shareholders in two ways: cash dividends and stock dividends. 
 
 

44.In 2009, J.P. Morgan cut its dividend down to $0.05 per share and the bank's share price increased in response. 
 
 

45.Adoption of Rule 10b-18 by the SEC has protected firms from being prosecuted for manipulating their share price through share repurchases. 
 
 

46.The managers of the firm set the dividend paid to the shareholders. 
 
 

47.A high-dividend policy is more difficult for a weak firm—than a strong firm—because it likely will not have the cash to support it. 
 
 

48.Healy and Palepu found that the stock price of firms that stopped paying a dividend declined by 9.5% on average upon announcement. 
 
 

49.Many companies have automatic dividend reinvestment plans (DRIPs). 
 
 

50.An alternative to paying cash dividends is to pay stock dividends. 
 
 

51.Dividend payments are used to change the firm's capital structure by replacing equity with debt. 
 
 

 

 

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