Which of the Following Reasons Is Used to Justify Stock

question 95

Multiple Choice

Which of the following reasons is used to justify stock repurchases?

• A) The repurchase narrows ownership.
• B) The repurchase modifies the firm's capital structure.
• C) The repurchase reduces the firm's costs associated with servicing small stockholders.
• D) All of the above.

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Definitions:

Agenda-Setting Theory

A communication theory that suggests mass media has the power to determine which issues are considered important in public and political discourse.

Gatekeeper

A gatekeeper is an individual or entity responsible for controlling access to information, resources, or markets, often acting as a filtering or deciding factor.

Two-Step Flow Theory

Explains that media can also influence early adopters of new ideas (called “opinion leaders”) who filter the content through their own interpretations and then pass it on to influence certain groups of publics.

Early Adopters

describes individuals or businesses who use or adopt new products, services, or technologies before the majority of the population, often influencing trends and market acceptance.