All of the Following Are Reasons a Company Might Repurchase

question 78

Multiple Choice

All of the following are reasons a company might repurchase its own shares except:

• A)to distribute excess cash to the shareholders.
• B)as the first step in establishing a dividend policy.
• C)to increase the earnings per share.
• D)as a signal that management thinks the shares are undervalued on the market.

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Definitions:

Cotton Plantations

Large agricultural estates in the Southern United States, where cotton was grown as the principal crop, largely through the labor of enslaved African Americans.

Labor Protest

An organized public demonstration or action by workers to express grievances or demand changes in employment conditions, such as higher wages or safer working environments.

U.S.

The United States of America, a federal republic consisting of 50 states and a federal district, known for its influential role in world affairs and its diverse population and culture.

Industrial Cities

Industrial cities are urban areas that have undergone significant development due to the presence and growth of manufacturing and industry.