Stock Repurchases Are Like Bumper Dividends, but They Are Not

question 9

True/False

Stock repurchases are like bumper dividends, but they are not typically substitute for regular cash dividends.

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Definitions:

Donee Beneficiary

A party who benefits from a contract made between two other parties, without any obligations to perform or pay.

Intended Beneficiary

An individual or group for whom a contract is specifically made to benefit, granting them certain rights or benefits.

Creditor Beneficiary

A creditor beneficiary is a third party that benefits from a contract in which one party (the promisor) agrees to pay a debt owed to the beneficiary by the other party (promisee).

Incidental Beneficiary

A third party who might benefit from a contract between two other parties but does not have legal rights to enforce the contract terms.