Which of the Following Is NOT a Possible Result of a Stock

question 3

Multiple Choice

Which of the following is NOT a possible result of a stock repurchase?

• A) Removing a large number of shares from circulation can change the ability of certain shareholders to control the firm.
• B) If the number of remaining shares is relatively small, the remaining shares will be less liquid.
• C) The debt-to-equity ratio will be increased.
• D) By repurchasing stock when it is undervalued, managers can effectively transfer value from stockholders who choose to sell their shares to stockholders choose to remain invested in the company.

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Definitions:

Health-Care Costs

Expenses related to maintaining and improving personal health, including medical services, medications, and hospital care.

Air Pollution

The release of pollutants into the air that are detrimental to human health and the planet's ecosystems.

Urbanization

refers to the process by which towns and cities grow as populations move from rural to urban areas, often in search of better economic opportunities.

Triple Bottom Line

A company’s balance sheet according to profit, people, and the planet.