Which of the Following Reasons Is Used to Justify Share

question 57

Multiple Choice

Which of the following reasons is used to justify share buybacks?

• A)The repurchase narrows ownership.
• B)The repurchase modifies the firm's capital structure.
• C)The repurchase reduces the firm's costs associated with servicing small shareholders.
• D)All of the above.

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Definitions:

Attributions

The process of explaining the causes of behaviors and events, which can be internal (personal factors) or external (situational factors).

Personally Relevant

Pertains to information or situations that hold significant importance or consequence to the individual on a personal level.

Motives

Internal drives or reasons that prompt individuals to act in certain ways.

Self-Fulfilling Prophecies

Predictions that directly or indirectly cause themselves to become true, due to positive feedback between belief and behavior.