Which of the Following Is Not a Reason That Companies

question 18

Multiple Choice

Which of the following is not a reason that companies may undertake a share buy-back?

• A) As a defence against a hostile takeover.
• B) To manage the capital structure.
• C) To increase the worth per share of the remaining shares.
• D) As a way to efficiently manage surplus funds.

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Definitions:

Stock Prices

The cost of purchasing a share of equity in a company at any given time on the stock market.

Real Rate Of Return

The profit or loss on an investment adjusted for inflation, representing the actual buying power of the earnings.

Experts

Experts are individuals with extensive knowledge or proficiency in a specific area, offering insights and advice grounded in deep understanding.

Retirement Program

A financial arrangement designed to provide individuals with an income or pension upon retirement.