What Is the Return on Equity for Runs and Goses

question 3

Multiple Choice

What is the return on equity for Runs and Goses?

• A) 26.1%
• B) 44.7%
• C) 62.6%
• D) 18.4%
• E) 7.9%

---

Definitions:

Repurchase

Also known as a buyback, it is a company's decision to buy its own shares from the marketplace, potentially raising the value of remaining shares.

Tax Advantages

Financial benefits derived from tax laws that reduce the amount of tax to be paid by allowing certain deductions, credits, or deferrals.

IRS

The Internal Revenue Service, the United States government agency responsible for tax collection and tax law enforcement.

Signaling Effects

The idea that actions taken by a company, such as dividend payments or changes, can provide information to the market about its future prospects.