Which One of the Following Would NOT Be a Reason

question 85

Multiple Choice

Which one of the following would NOT be a reason for a firm to repurchase previously issued stocks?

• A) to repel a takeover attempt
• B) to pressure the market price to rise
• C) management may be signaling to the shareholders that the stock is undervalued in the marketplace
• D) it may be beneficial taxwise to current stockholders for the firm to use excess cash instead of using it to pay cash dividends

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Definitions:

Recruitment

The process of finding, screening, and hiring candidates for a job or organizational role.

Aspirations

Hopes or ambitions of achieving something.

Ethical

Pertaining to or dealing with morals or the principles of morality; adhering to the standards of what is right or just in behavior.