An advantage of a repurchase

Assignment Help Financial Management

Reference no: EM131555569

Which of the following is not an advantage of a repurchase?

a. A repurchase announcement may be viewed as a positive signal by investors because repurchases are often motivated by managements' belief that their firms' shares are undervalued.

b. Stockholders are often indifferent between dividends and repurchases, and repurchases are generally just as dependable as dividends.

c. Stockholders have a choice when the firm distributes cash by repurchasing stock—they can sell or not sell their shares.

d. Repurchases can be used to produce large-scale changes in a firm's capital structure.

e. A repurchase can remove a large block of stock that is "overhanging" the market and keeping the price per share down.

Reference no: EM131555569

Questions Cloud

Economic order quantity model : Economic Order Quantity model in placing order. What is average inventory held during year including safety stock if store insists on 5 days safety stock.

Set up the null and alternative hypotheses for the test : Set up the null and alternative hypotheses for the test. Next find the rejection region for the test using a =0.01.

Percentage of adults : If the true percentage of adults who would choose to sleep when they are at home sick is 74?%, would you be? surprised? Yes or no.

Describe several ways to maintain a safe online profile : Describe several ways to maintain a safe and private online profile. Should employers have the right to search through social profiles of employees?

An advantage of a repurchase : Which of the following is not an advantage of a repurchase?

Find the directions of greatest attraction : Is the origin an attractor, a repeller, or a saddle point of the dynamical system xk+1 = Axk?

Use for debt when calculating cost of capital : what weight should it use for debt when calculating the cost of capital?

How are the personal ethics and corporate ethics interpreted : Learning Activity: Case study- How are the personal ethics and corporate ethics interpreted differently (a) in the USA, and (b) in Japan?

What is the probability of producing : Daily output of Marathon's Garyville, Lousiana, refinery is normally distributed with a mean of 232,000 barrels of crude oil per day with a standard deviation.

User Account

All Pages