On 4 January 2006 Cockatoo Bakeries Ltd Announced Its Preliminary

On 4 January 2006 Cockatoo Bakeries Ltd announced its preliminary earnings report to the market, that EPS was expected to be 29.5 cents per shares for the financial year 2005/2006. On 4 January 2006 Cockatoo Bakeries' shares closed trading at $1.15. On 18 January 2006 the company announced the payment of a 6 cent interim dividend fully franked and its shares closed trading that day at $1.25. On 4 March 2006 Cockatoo Bakeries shares closed trading at $1.29. On 5 March 2006 Cockatoo Bakeries shares began trading ex- dividend. The majority of Cockatoo Bakeries shareholders choose to receive their dividend payments via electronic funds transfer and this transfer was made on 24 May 2006. Cockatoo Bakeries is subject to a company tax rate of 30%.
-A share buy- back may encourage investors,as they perceive a:

A) Floor price for the company's shares,produced by the company's buying
B) Floor price for the company's shares,countered by the company's buying
C) Ceiling price for the company's shares,countered by the company's buying
D) Ceiling price for the company's shares,produced by the company's buying