A Stock Repurchase Program

question 90

Multiple Choice

A stock repurchase program:

• A)requires all shareholders to sell a fraction of their shares.
• B)is preferred over a high-dividend program only by tax-exempt shareholders.
• C)decreases both the number of shares outstanding and the market price per share.
• D)has no effect on a firm's financial statements.
• E)is essentially the same as a cash dividend program provided there are no taxes or other costs.

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Definitions:

Thinking Preference

Refers to an individual's tendency or preferred way of processing information, whether analytically, creatively, logically, or based on feelings.

Feeling Preference

Feeling preference is a cognitive orientation toward prioritizing emotions and values over impersonal analysis in decision-making processes.

Self-Esteem

An individual's subjective evaluation of their own worth or personal value.

High Self-Esteem

The positive evaluation of oneself, characterized by confidence and respect for oneself.