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One of the Disadvantages of Stock Repurchases Is That

Question 30

Multiple Choice

One of the disadvantages of stock repurchases is that:


A) the company will spend its excess cash.
B) the company will not be able to change its capital structure.
C) the company will become vulnerable to takeovers.
D) the company will pay too much for stock that is repurchased.
E) the company will make it difficult for employee options to be exercised.

Correct Answer:

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