Which of the following statements is most correct?
A) Stock repurchases can be used by firms to defend against hostile takeovers since they increase the proportion of debt in a firm's capital structure.
B) After a 3-for-1 stock split, a company's price per share will fall and its number of shares outstanding will rise.
C) Investors can interpret a stock repurchase by a firm as a signal that the firm's managers believe the stock is underpriced.
D) Both statements a and b are correct.
E) All of the statements above are correct.

Question

Quizplus · Accepted Answer

The Answer of Which of the following statements is most correct?
A) Stock repurchases can be used by firms to defend against hostile takeovers since they increase the proportion of debt in a firm's capital structure.
B) After a 3-for-1 stock split, a company's price per share will fall and its number of shares outstanding will rise.
C) Investors can interpret a stock repurchase by a firm as a signal that the firm's managers believe the stock is underpriced.
D) Both statements a and b are correct.
E) All of the statements above are correct.

Which of the Following Statements Is Most Correct