A Stock Repurchase Program

question 90

Multiple Choice

A stock repurchase program:

• A)requires all shareholders to sell a fraction of their shares.
• B)is preferred over a high-dividend program only by tax-exempt shareholders.
• C)decreases both the number of shares outstanding and the market price per share.
• D)has no effect on a firm's financial statements.
• E)is essentially the same as a cash dividend program provided there are no taxes or other costs.

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