Which of the following would not be an appropriate reason for a firm to repurchase its stock: As an investment if management believes the market has undervalued the stock price. In order to have sufficient shares to cover employee stock programs. Solely to boost Earnings Per Share. Both A and B.
Which of the following would not be an appropriate reason for a firm to repurchase its stock: As an investment if management believes the market has undervalued the stock price. In order to have sufficient shares to cover employee stock programs. Solely to boost Earnings Per Share. Both A and B.
Chapter15: Dividend Policy
Section: Chapter Questions
Problem 12QTD
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Which of the following would not be an appropriate reason for a firm to repurchase its stock:
-
As an investment if management believes the market has undervalued the stock price.
-
In order to have sufficient shares to cover employee stock programs.
-
Solely to boost Earnings Per Share.
-
Both A and B.
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