A Reason Why a Company Might Wish to Buy Back

question 23

Multiple Choice

A reason why a company might wish to buy back its own shares is:

• A) to decrease its debt to equity ratio
• B) to protect its creditors
• C) to use funds to benefit shareholders where there are insufficient profitable investment opportunities
• D) all of the above

---

Definitions:

Antipyretic

A type of medication used to reduce or prevent fever by lowering the body temperature.

Anti-Inflammatory

Substances or medications that reduce inflammation or swelling in the body.

Prn Medication

Medication that is taken "as needed," or pro re nata, rather than at scheduled times.

Stat Order

An urgent instruction in a medical context that indicates a treatment or procedure needs to be performed immediately.