Which of the Following Motivates Corporations to Enter into Share

question 71

Multiple Choice

Which of the following motivates corporations to enter into share buyback programs?

• A)Favourable impact on EPS
• B)Expected favourable impact on share price
• C)To modify the firm's capital structure
• D)All of the above

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Definitions:

Expenses

Outflows or other uses of assets or incurrences of liabilities during a period from delivering or producing goods, rendering services, or carrying out other activities that constitute the entity's ongoing major operations.

Liability

Legal obligations related to finances that a business incurs throughout its operational processes.

Accounting Equation

The fundamental equation of double-entry bookkeeping: Assets = Liabilities + Owner's Equity.

Cash

Money in the form of currency that can include bills, coins, and balances in bank accounts that are readily available for use.