Which of the Following Is Not a Practical Motive for Stock

question 89

Multiple Choice

Which of the following is not a practical motive for stock repurchases?

• A) The desire to reduce the amount of the firm's outstanding debt.
• B) Having shares available for employee stock-option plans.
• C) Retiring shares of common stock.
• D) Obtaining shares to be used in acquisitions.
• E) All of the above are practical motives for stock repurchases.

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Definitions:

Bottom Quintile

Refers to the lowest fifth portion of a population sorted by income or wealth.

Economic Inequality

The unequal distribution of wealth, income, or economic resources among participants in an economy.

Tax Returns

Official documents filed with a government body that reports income, expenses, and other pertinent tax information.

Real Income

The amount of goods and services that can be bought with a unit of currency, adjusted for inflation or price changes over time.