Suppose a Firm Does Not Pay a Dividend but Repurchases

question 60

Multiple Choice

Suppose a firm does not pay a dividend but repurchases stock using $28 million of cash, the market value of the firm decreases by ________.

• A) $28 million
• B) -$28 million
• C) 0
• D) cannot say for sure

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Definitions:

Evolutionary Views

Perspectives or theories that explain various aspects of human behavior, physical traits, or societal structures as a result of evolutionary processes.

Sex Differences

Biological or physiological distinctions between males and females, including genetics, hormones, and anatomy.

Critics

In a general sense, critics are individuals who evaluate or analyze works, ideas, or performances, but the term does not have a specific psychological definition.

Evolutionary Psychology

A field of psychology emphasizing evolutionary mechanisms that may help explain human commonalities in cognition, development, emotion, social practices, and other areas of behavior.