Which Statement About a "Share Buy-Backs" Is Correct

question 72

Multiple Choice

Which statement about a "share buy-backs" is correct?

• A)The EPS of the company will decrease after a share buy-back.
• B)Share buy-back decreases the information asymmetry for investors.
• C)It is an administratively cumbersome way to award stock compensation.
• D)Accounting is the same whether repurchased shares are cancelled or not.

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Definitions:

IgA

Immunoglobulin A, a type of antibody that plays a critical role in the immune function of mucous membranes.

IgE

Immunoglobulin E, a class of antibodies produced by the immune system that plays a key role in allergic reactions.

Acquired Immunodeficiency Syndrome

A chronic, potentially life-threatening condition caused by the HIV virus, which damages the immune system.

Abbreviation

An abridged version of a word or phrase.