题目
题目
单项选择题

Which of the following statements is FALSE?[Fill in the blank]

选项
A.a. In a perfect capital market, when a firm repurchases shares, the supply of shares is reduced, and at the same time, the value of the firm’s assets declines.
B.b. The practice of maintaining relatively constant dividends is called dividend smoothing.
C.c. Homemade dividend refers to the process by which an investor, in a perfect capital market, chooses between equity and debt.
D.d. The idea that dividend changes reflect managers’ views about a firm’s future earnings prospect is called the signalling hypothesis.
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思路分析
We are asked to identify which statement is FALSE among four options about dividends and related concepts. Option a: 'In a perfect capital market, when a firm repurchases shares, the supply of shares is reduced, and at the same time, the value of the firm’s assets declines.' This statement mixes two ideas. Share repurchases reduce the number of shares outstanding (supply of shares). In a perfect ......Login to view full explanation

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