Reasons for Stock Repurchases Include All of the Following EXCEPT

question 14

Multiple Choice

Reasons for stock repurchases include all of the following EXCEPT:

• A)to acquire shares used in management stock option incentive programs, in which managers can purchase shares of stock at pre-specified prices.
• B)to use in stock-based acquisitions of other firms.
• C)the firm has the cash and sees its own stock as one of its most attractive investment alternatives.
• D)all of the above
• E)none of the above

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Definitions:

Stakeholders

Individuals or groups affected by or having an interest in the operations or policies of a business or entity.

Rights

Fundamental principles or entitlements that individuals possess, legally or morally, allowing them to perform or refrain from certain actions.

Profitability

A financial metric indicating the degree to which a company or business earns more revenue than it spends on expenses.

Costs

Costs generally refer to the expenditure required to achieve a specific objective, such as the money spent on goods, services, production, or projects.