From the Firm's Point of View, a Major Advantage of Stock

question 39

Multiple Choice

From the firm's point of view, a major advantage of stock repurchases over cash dividends is

• A) a commitment to maintain or increase repurchases every year.
• B) a stronger signal about the firm's financial strength.
• C) that they restrain agency costs.
• D) that the repurchases imply no commitment to pay the same amount or more every year.

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Definitions:

Axons

Long, slender projections of nerve cells that transmit electrical impulses away from the neuron's body.

Dendrites

Extensions of a neuron that receive signals from other neurons and transmit them towards the cell body.

Neurons

Nerve cells that are the basic building blocks of the nervous system, responsible for transmitting information throughout the body.

Dendrite

The branched projections of a neuron that receive electrochemical stimulation from other neural cells, leading to the generation of a nerve impulse in the neuron.