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.

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Definitions:

Paradox of Voting

The situation in which individual rationality (deciding not to vote because a single vote rarely decides an election) leads to a collective problem (poor electoral outcomes if many decide not to vote).

Median-Voter Model

The median-voter model is a political theory that suggests outcomes of majority-rule elections are determined by the preferences of the median voter.

Television Networks

Entities that provide content for viewing on televisions, distributing a wide range of programming to the public.

Programming

The process of designing, writing, testing, debugging, and maintaining source code for computer programs or applications.