Share repurchases tend to increase agency costs

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Reference no: EM13917631

Which one of the following statements is correct?

Firms prefer to cut dividend payments rather than borrow money to fund a short-term cash need.

Share repurchases tend to increase agency costs.

Maintaining a steady dividend is a key goal of most dividend-paying firms.

Tax rates are the key factor in determining a firm's dividend policy.

Stock prices tend to ignore expected changes in dividend payments.

Reference no: EM13917631

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