Which of the Following Is NOT a Reason for a Company

question 8

Multiple Choice

Which of the following is NOT a reason for a company to purchase treasury shares?

• A) To reward valued employees
• B) To avoid a takeover by an outside company
• C) To buy the shares at a high price to increase total shareholders' equity
• D) To support the company's stock price
• E) To buy the shares when the price is low and sell when the price is higher

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Definitions:

Trading Range

Price range between the highest and lowest prices at which a stock is traded.

Dividend Yield

The ratio of a company's annual dividends to its current share price, represented as a percentage.