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:

Enzymatic Resolution

A process using enzymes to separate enantiomers of a racemic mixture based on their reactivity.

Electrophoresis

A laboratory technique used to separate charged molecules, such as DNA, RNA, or proteins, based on their size and charge by applying an electric field.

Ninhydrin Test

A chemical test used for detecting the presence of amino acids, where a color change indicates a positive result.

Major Ionization State

The predominant form of a molecule at a given pH level, determined by the molecule's dissociation into ions in solution.