Which of the Following Statements Concerning Stock Repurchases Is Most

question 126

Multiple Choice

Which of the following statements concerning stock repurchases is most correct?

• A) Increasingly companies are using stock repurchases to distribute cash to their shareholders, but dividends remain the primary means to distribute cash.
• B) Companies currently spend more money on stock buybacks than on dividend payments.
• C) Repurchasing stock is strictly a financing decision made by the corporation.
• D) A tender offer is the only way to complete a stock repurchase due to SEC rules.

---

Definitions:

Medicare

A federal health insurance program in the United States for people who are 65 or older, certain younger people with disabilities, and people with End-Stage Renal Disease.

Eligible Americans

Citizens of the United States who meet specific criteria set by law, allowing them to participate in activities such as voting or receiving certain benefits.

Pharmaceutical Companies

Companies involved in the research, development, production, and marketing of drugs and other healthcare products.