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A Corporation May Wish to Repurchase Some of Its Shares

Question 32

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 after-tax 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) corporations may have strategic goals for the organization that may be adversely
E) impacted by the number of shares outstanding.

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