A Firm Has $250,000 to Spend on Either a One-Time

question 95

Multiple Choice

A firm has $250,000 to spend on either a one-time special dividend or on a share repurchase program. If the share repurchase is selected, then the firm's:

• A) value will decrease the same as if the dividend option had been selected.
• B) balance sheet will be unaffected and the share price will remain constant.
• C) equity balance will be reduced by less than it would have been under the dividend option.
• D)shareholders will receive less value than under the dividend option.

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Definitions:

Innate Immunity

A part of the immune system that provides immediate defense against infection but does not confer long-lasting or protective immunity to the host.

Adaptive Immunity

The component of the immune system that is characterized by memory and specificity, allowing for an enhanced response to subsequent encounters with antigens.

Memory Cells

Specific cells in the immune system that remember an antigen that the body has previously encountered, allowing a faster and stronger response upon re-exposure.

Macrophages

A type of white blood cell that engulfs and digests cellular debris, foreign substances, and pathogens.