Firms Should Engage in Share Repurchases Only If They Do

question 18

True/False

Firms should engage in share repurchases only if they do not have available investments with sufficiently high ROIC.

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Definitions:

Biological Asset

Living plants or animals that companies hold for sale, into agricultural produce, or into additional biological assets.

IAS 41

An international accounting standard that relates to agriculture, covering the accounting for agricultural activity and the management of living plants and animals.

Agricultural Produce

The harvested product of the entity’s biological assets.