The firm may bid up the share price

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Which of the following statements best describes an advantage of share repurchases as an alternative to cash dividends?

a) The firm may bid up the share price, paying too much for the shares to the selling shareholders.

b) Shareholders have a choice with a share repurchase - they can tender their shares or they can refuse to tender.

c) The firm can use a share repurchase program to signal to investors that shares are currently overvalued.

d) An unexpected share repurchase will alter the market's expectations regarding future dividends.

Reference no: EM132234911

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