Which One of the Following Is Not a Reason Why

question 74

Multiple Choice

Which one of the following is not a reason why firms choose repurchases rather than dividends?

• A)Provide flexibility
• B)Increase the value of existing stock options
• C)Provide shareholders with a tax advantage
• D)Offset dilution
• E)Conserve cash

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Definitions:

Subatomic Particles

Particles that are smaller than an atom, including protons, neutrons, and electrons, which make up the atoms' structure.

Protons

Positively charged particles found in the nucleus of an atom.

Neutrons

Neutral particles within an atom's nucleus, contributing to the atom's mass but not its charge.

Atom

The basic unit of a chemical element, made up of a nucleus surrounded by electrons.