Which Statement About a "Share Buyback" Is Correct

question 69

Multiple Choice

Which statement about a "share buyback" is correct?

• A)The EPS of the company will decrease after a share buyback.
• B)Share buy-back decreases the information asymmetry for investors.
• C)It is an administratively cumbersome way to award stock compensation.
• D)Accounting is the same whether repurchased shares are cancelled or not.

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Definitions:

Theodore Roosevelt

The 26th President of the United States, known for his progressive policies and leadership of the Rough Riders in the Spanish-American War.

White Southerners

Refers to white inhabitants of the Southern United States, a group historically significant for its role in the Civil War, segregation, and the civil rights movement.

White House

The official residence and workplace of the President of the United States, located at 1600 Pennsylvania Avenue NW in Washington, D.C.

Frederick Douglass

A former enslaved African American who became a prominent abolitionist, orator, and writer in the 19th century, advocating for the rights of African Americans.