Which of the following statements is FALSE?
A)Managers are much less committed to dividend payments than to share repurchases.
B)Share repurchases are a credible signal that the shares are underpriced,because if they are over-priced a share repurchase is costly for current shareholders.
C)While an increase of a firm's dividend may signal management's optimism regarding its future cash flows,it might also signal a lack of investment opportunities.
D)Managers will clearly be more likely to repurchase shares if they believe the stock to be under-valued.

Question

Quizplus · Accepted Answer

This statement is incorrect as managers prioritize dividend payments over share repurchases as dividends are seen as a more stable source of income for shareholders.

Which of the Following Statements Is FALSE