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

question 32

Multiple Choice

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

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

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Definitions:

Innate Behaviors

Behaviors that are genetically coded and present at birth, not learned through experience, such as reflex actions in infants.

Inherited Response

A reaction or behavior that is genetically passed down from one generation to the next, often instinctual in nature.

Sucking Response

An innate reflex in infants, triggering them to instinctively suck anything that touches the roof of their mouth.

Philosophy Of Dualism

The belief that reality or existence is divided into two distinct and irreducible elements, often referring to the division of mind and body or material and immaterial.