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 under-priced, 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 false as managers are often committed to both dividend payments and share repurchases.

Which of the Following Statements Is False