Which of the Following Statements Regarding Share Repurchases Is (Are)false

question 49

Multiple Choice

Which of the following statements regarding share repurchases is (are) false?

• A)Share repurchases increase the wealth of those shareholders who sell back their shares to the detriment of those who retain their shares.
• B)Share repurchases increase the value of the equity of the firm.
• C)Share repurchases increase the earnings per share of the firm.
• D)All of the above statements are false.

---

Definitions:

Clayton Act

An amendment to United States antitrust law, aiming to prevent specific practices of anticompetitive behavior not covered by the Sherman Act.

Price Discrimination

A pricing approach in which the same provider sells identical or nearly identical products or services for different prices across various markets.

Tying Contracts

Agreements where the buyer of a particular product is forced to buy an additional product from the same seller.

Consent Decrees

Legal agreements approved by a judge that settle a dispute without admitting guilt or wrongdoing, often used in antitrust or civil rights cases.