If You Ignore Taxes and Costs,a Stock Repurchase Will

question 92

Multiple Choice

If you ignore taxes and costs,a stock repurchase will:
I.reduce the total assets of a firm.
II.decrease the earnings per share.
III.reduce the PE ratio more so than an equivalent stock dividend.
IV.reduce the total equity of a firm.

• A)I and III only
• B)I and IV only
• C)II and IV only
• D)I, III, and IV only
• E)II, III, and IV only

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Definitions:

Urogenital Sinus

A part of the embryonic development in mammals where the urinary and genital tracts are combined into a single channel.

Prostate Gland

A gland in the male reproductive system that produces a fluid that nourishes and transports sperm during ejaculation.

Ductus Deferens

A muscular tube in the male reproductive system that carries sperm from the epididymis to the ejaculatory duct.

Uterine Body

The central part of the uterus where a fetus develops during pregnancy.