Stock Repurchases Are Most Commonly Interpreted by Investors as a Signal

question 44

Multiple Choice

Stock repurchases are most commonly interpreted by investors as a signal that:

• A) future repurchases will be forthcoming.
• B) the firm's shares are underpriced.
• C) the firm has an increasing number of positive-NPV opportunities.
• D)stock repurchases will gradually replace the stock dividends.

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Definitions:

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core beliefs that influence how individuals behave and make decisions.

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The set of mental and moral qualities distinctive to an individual.

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The distinct characteristics or qualities that make someone or something different from anything or anyone else.