Which Statement Is Correct

question 86

Multiple Choice

Which statement is correct?

• A) Stock repurchases invalidate the dividend discount model
• B) Stock repurchases do not add value to a business and can be ignored.
• C) When there are repurchases, it is simpler to value a business by discounting the free cash flow.
• D) Stock repurchases increase the number of shares and make it difficult to forecast dividends per share

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Definitions:

Conventional

Adhering to established norms, standards, or traditions; often suggesting a lack of novelty or innovation.

Compliant Agents

Autonomous or semi-autonomous entities, typically in a digital context, designed to follow specific commands or rules set by users or other systems.

Responsible Providers

Entities or individuals who offer services or products with a commitment to ethical practices, reliability, and accountability.

Parents

The caretakers and legal guardians of a child, responsible for their upbringing, support, and education.