Use the Following Two Statements to Answer This Question

question 22

Multiple Choice

Use the following two statements to answer this question:

• A) I and II are correct.
• B) I and II are incorrect.
• C) I is incorrect and II is correct.
• D) I is correct and II is incorrect.
• I.Managers only repurchase stocks to take advantage of their underpricing
• II.Stock repurchases are exactly the same as cash dividends in the real world.

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Definitions:

Interplay

The reciprocal influence or interaction between two or more factors, highlighting how they affect each other in various contexts.

Conscious

The part of the mind within our usual awareness.

Pleasure Principle

The driving force of the unconscious that wants whatever brings pleasure.

Immediate Gratification

The desire to experience pleasure or fulfillment without delay or deferment.