Which One of the Following Statements Related to Stock Repurchases

question 44

Multiple Choice

Which one of the following statements related to stock repurchases is correct?

• A)U.S. industrial firms have increased their stock repurchases every year for each of the past twenty years.
• B)A stock repurchase can be used as a means for incumbent officers to retain control of a firm.
• C)A tender offer indicates that a firm is willing and able to purchase how ever many shares the current shareholders wish to sell.
• D)All stock repurchases must be identified as such to the selling party.
• E)Stock repurchases can be a relatively tax-efficient method of distributing cash to shareholders.

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Definitions:

Trade Discount

A reduction from the list price of goods or services provided by a vendor to buyers in the trade.

Trade Discount

A reduction in the retail or list price of a product or service provided by a seller to a buyer in the trade channel.

Trade Discount

A reduction in price offered by a seller to a buyer for purposes of increasing sales, typically calculated as a percentage off the list price.

Trade Discount

A deduction from the list price of goods agreed upon by the seller and the buyer, typically offered by suppliers to retailers.