The Net Effect of a Stock Repurchase Is ________

question 33

Multiple Choice

The net effect of a stock repurchase is ________.

• A) similar to an interest payment
• B) similar to a cash dividend
• C) similar to a stock split
• D) similar to a reverse stock split

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Definitions:

Working Capital Investment

Funds used by a company to finance its day-to-day operations, including investments in inventory and accounts receivable.

Net Present Value

The calculation used to determine the current value of a series of future cash flows by discounting them at a specific rate.

Cash Inflows

Any money coming into a company from various sources, including sales, financing, and investments.

Investment Proposal

A plan or suggestion put forward for consideration by others, typically involving expenditure on assets in expectation of achieving returns.