Enhancement of Shareholder Value Through Stock Repurchase Is Achieved by

question 92

Multiple Choice

Enhancement of shareholder value through stock repurchase is achieved by

• A) reducing the number of shares outstanding and thereby raising earnings per share.
• B) sending a positive signal to investors in the marketplace that management believes that the stock is undervalued.
• C) providing a temporary floor for the stock price, which may have been declining.
• D) all of the above.

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Definitions:

Marbles

Small, round objects, typically made of glass, clay, steel, plastic, or agate, used as playing pieces in various children's games or as a collectible item.

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior, where an association is made between a behavior and a consequence for that behavior.

Token Economy

A behavioral modification technique based on the systematic reinforcement of target behavior. The reinforcements are tokens that can be exchanged for other reinforcements.

Token Economy

A behavior modification system used to encourage a desired behavior through the use of tokens that can be exchanged for various rewards.