A Major Disadvantage of Stock Repurchases Is That the Company

question 6

Multiple Choice

A major disadvantage of stock repurchases is that the company:

• A)spends most of its excess cash to repurchase the stock.
• B)cannot change its capital structure through such an action.
• C)becomes more vulnerable to takeovers after the stock repurchase.
• D)might pay too much for stock that is repurchased.
• E)makes it difficult for employees to exercise their stock options.

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Definitions:

Vocal Speech

The production of sounds or utterances using the vocal tract, including the lips, tongue, throat, and lungs, for the purpose of communication.

Brain Locus

A specific location or site in the brain where certain processes or activities are carried out.

Second Languages

a term referring to any language learned in addition to a person's first language.

Parietal Lobe

A region of the brain located at the upper back area in the skull, responsible for processing sensory information such as touch, temperature, and pain.