All of the Following Are Advantages of Share Repurchase as a Dividend

question 65

Multiple Choice

All of the following are advantages of share repurchase as a dividend decision EXCEPT:

• A)effectively converts dividend income into capital gains income
• B)provide firm with greater financial flexibility in timing the payment of returns to shareholders.
• C)all current shareholders are able to sell their shares at a higher price
• D)they represent a signal to investors that the company expects higher earnings in the future

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Definitions:

Divorce Rates

The statistical measure of the number of divorces occurring among the population within a certain time frame, often per 1,000 inhabitants.

Out-Of-Wedlock Children

Children born to parents who are not legally married to each other.

Long Term Separation

A period where individuals are distanced from each other for an extended time, often referring to family or partners due to various reasons like work or marital issues.

College Degrees

Certifications awarded by colleges or universities upon successful completion of a course of study, signifying academic achievement.