Which of the Following Statements About Stock Repurchases Is True

question 4

Multiple Choice

Which of the following statements about stock repurchases is true?

• A)The numerous SEC filing requirements make the transaction costs of share repurchases prohibitively high.
• B)Most share repurchases are conducted by notifying shareholders that the firm wants to repurchase a specified number of shares at a specified price that is usually 15-20% above
• The current market value with a request for interested shareholders to tender their shares.
• C)Most share repurchases are executed via firms' simply buying their own shares on the open market.
• D)Once a firm announces that it plans to repurchase a specific number of its shares on the open market, it is obligated to execute the repurchase within the next one to three years.

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Definitions:

Alcoholism

A chronic disease characterized by uncontrolled drinking and a preoccupation with alcohol, significantly affecting one's health, relationships, and responsibilities.

Disease

A disorder of structure or function in a human, animal, or plant, especially one that produces specific signs or symptoms or that affects a specific location and is not simply a direct result of physical injury.

Social Dysfunction

A disruption or breakdown in the normal functioning of a social system, often leading to social problems.

Sexually Harassed

Experiencing unwanted sexual advances, requests for sexual favors, or other verbal or physical harassment of a sexual nature.