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A Corporation May Wish to Repurchase Some of Its Shares

Question 87

Multiple Choice

A corporation may wish to repurchase some of its shares in the market for all the following reasons except


A) this action might maximize aftertax benefit to shareholders.
B) it can stabilize or increase the market price of the stock.
C) the stock may be needed for an employee compensation plan.
D) all of the other answers are correct

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