Which Statement Is Correct Respecting a Company's Repurchase of Its

question 12

Multiple Choice

Which statement is correct respecting a company's repurchase of its own shares?

• A)It can provide a tax advantage to the shareholder.
• B)It provides a negative signal to the market.
• C)It causes earnings per share to decrease.
• D)Infers that corporate executives believe their company's shares to be overvalued.

---

Definitions:

Advantages

The positive aspects or benefits that contribute to achieving success or gaining a competitive edge.

Disadvantages

Disadvantages refer to the negative aspects or conditions that reduce effectiveness, efficiency, or desirability of something or someone.

Expressed Agreement

A contract in which the terms are stated clearly and explicitly, typically in written or spoken form.

Agents

Individuals or entities authorized to act on behalf of another, known as the principal, in commercial transactions or legal matters.