Creates new shares which increases share value

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Reference no: EM132055023

( T or F )

1. The exercise of warrants creates new shares which increases share value because cash is paid into the firm at the time of warrant exercise.

2. If the management of the firm is suspected of serious agency problems, the board of directors should urge it to pay a relatively small amount of dividends.

3. In general, from the perspective of shareholders in a high tax bracket, a stock repurchase is more desirable than a cash dividend.

Reference no: EM132055023

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