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DuLiuns to Shafehölders: Dividends and Share Repurchases transaction? $21.93 per

ID: 2793839 • Letter: D

Question

DuLiuns to Shafehölders: Dividends and Share Repurchases transaction? $21.93 per share $19.94 per share O $24.93 per share O $17.95 per share Which of these factors are considered an advantage of a stock repurchase? Check all that apply. A repurchase can remove a large block of stock that is overhanging the market and keeping the per-share price depressed When a firm distributes cash by repurchasing stock, stockholders have the option to either sell or not sell stock Stockholders who sell their stock back to the company might claim that they were not made fully aware of all implications of the repurchase

Explanation / Answer

Answer) Advantages of Stock repurchase

Option 1 marked is correct . As Repurchase of share supports the market price of share . In some cases the share price might have decreased due to economic recession etc. Hence company buy back the shares to support the price of share in the market.

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