Firms Can Use Share Buybacks as a Dividend Substitute

question 117

True/False

Firms can use share buybacks as a dividend substitute.

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Definitions:

High-School Education

A phase of formal education typically covering grades 9 through 12, aimed at preparing adolescents for college, vocational training, or the workforce.

Rote Learning

The process of memorizing information based on repetition without understanding the underlying meaning.

Thinking Skills

Cognitive abilities that enable a person to process information, reason, remember, and relate ideas logically.

High-School Dropout

Describes an individual who does not complete his or her high school education, often resulting in fewer job opportunities and lower lifetime earnings.