Which of the Following Is Least Important to Repurchase Decisions

question 3

Multiple Choice

Which of the following is least important to repurchase decisions of large American corporations?

• A) The previous level of dividends.
• B) the tax consequences to shareholders.
• C) Lack of good investment opportunities for cash retained in the firm.
• D) The company is holding more cash than it would like.

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Definitions:

Finished Goods Inventory

The total value of all completed products that have not yet been sold by a company.

Cash Collections

The process of gathering all cash receipts from sales or other sources during a particular period.

Merchandise Purchases Budget

A financial plan that estimates the cost of goods a company needs to purchase to meet its sales goals.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period of time, primarily used to assess whether a company has sufficient cash to fulfill its operations and financial commitments.