Stock repurchases may be made for all of the following reasons EXCEPT
A) to make shares available for stock option plans.
B) to help discourage an unfriendly take-over by reducing the number of publicly traded shares.
C) to enhance shareholder value by reducing the number of shares outstanding and thereby raising earnings per share.
D) to make shares available for stock dividends.

Question

Quizplus · Accepted Answer

Stock repurchases are not typically made to make shares available for stock dividends. Rather, stock dividends are typically paid from retained earnings or additional shares issued by the company.

Stock Repurchases May Be Made for All of the Following