Which Statement Is Correct

question 36

Multiple Choice

Which statement is correct?

• A) Stock that has been repurchased must be put in the firm's Treasury and cannot be resold.
• B) Most repurchases are mandatory. Investors are obliged to sell part of their holding back to the company.
• C) Corporations are much more willing to cut repurchases than dividends.
• D) Companies like to smooth repurchases.

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Definitions:

Extending Reductions

The process of increasing the scope or duration of cost-cutting or resource-saving measures.

Deep Water Exploration

The process of investigating and exploring the seabed and sub-sea layers in oceanic environments at great depths for resources or scientific research.

Company Profits

The financial gain that a company obtains after deducting all its expenses from its total revenues.

Restructuring

The process of altering the organizational, operational, or financial setup of a company to make it more profitable, efficient, or better organized for its current needs.