Which of the Following Is the Biggest Reason for Buying

question 85

Multiple Choice

Which of the following is the biggest reason for buying back shares via an on-market or an off-market buyback?

• A)The shares were purchased to improve earnings per share and net asset backing.
• B)The shares were purchased to achieve an optimal capital-structure mix.
• C)The shares were purchased because the shares are undervalued.
• D)The shares were purchased to increase leverage.

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Definitions:

First Home

Typically refers to the first house that a person or family purchases and lives in.

Consumer Decision-Making Process

The steps that consumers go through before, during, and after making purchases, including need recognition, information search, evaluation, purchase, and post-purchase behavior.

Problem Recognition

The initial step in the consumer decision-making process, where an individual realizes a difference between their current state and a desired state.

Cognitive Dissonance

The mental discomfort experienced by an individual who holds two or more contradictory beliefs, ideas, or values at the same time.