Which of the Following Statements Is Correct

question 84

Multiple Choice

Which of the following statements is correct?

• A) Generally speaking, investors interpret a firm's decision to repurchase their own stock as a positive signal.
• B) A stock repurchase may be viewed as a sign that the firm doesn't have enough attractive capital budgeting projects.
• C) The IRS can impose penalties on a firm if tax authorities can show that the repurchase was performed primarily to avoid dividend taxation.
• D) All of the options are correct.

---

Definitions:

Good Moods

A psychological state characterized by feelings of contentment, happiness, or positivity.

Moods Last

A reference to the duration or persistence of emotional states that are less specific and more prolonged than immediate feelings or reactions.

External Information

Data and insights obtained from sources outside an organization, used for decision-making and strategic planning.

External Sources

Resources, information, or support that comes from outside an organization or system.