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:

Hamstring Strain

An injury to one of the three hamstring muscles at the back of the thigh, often caused by overstretching.

Sore Muscles

Discomfort or pain in muscles after unusual or vigorous physical activity, often due to microtears in muscle fibers.

Stiff Muscles

A condition where muscles feel tight and restricted in movement, often resulting from exercise, injury, or stress.

High Intensity

Referring to activities or exercises that require a large amount of effort and result in rapid heart rate and increased respiration.