Which of the Following Is the Best Definition of a Repurchase

question 204

Multiple Choice

Which of the following is the best definition of a repurchase?

• A) Payment made by a firm to its owners in the form of stock, diluting the value of each share outstanding.
• B) Procedure where a firm's number of shares outstanding is reduced.
• C) Policy where a firm pays dividends only after meeting its investment needs while maintaining a desired debt-to-equity ratio.
• D) Another method used to pay out a firm's earnings to its owners, which provides more preferable tax treatment than dividends.
• E) Cash payment made by a firm to its owners in the normal course of business, usually made four times a year.

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Definitions:

Births

The occurrence of a baby or babies being born.

Deaths

The cessation of all biological functions that sustain a living organism, marking the end of an organism's life.

Climax Community

In ecology, community that results when succession has come to an end.

Rainfall

The total amount of precipitation, including rain, snow, sleet, or hail, that falls to the ground.