Companies are more apt to choose repurchases over dividends if doing so will enable them to
I.take advantage of a market undervaluation of their shares.
II.maintain or increase the value of executive stock options.
III.offset the dilution created by the exercise of executive stock options.
IV.distribute revenue increases that are considered to be temporary or short-term in nature.

Question

Quizplus · Accepted Answer

Repurchases can help take advantage of undervaluation (I), maintain or increase executive stock option value (II), offset dilution from option exercises (III), and distribute temporary revenue increases (IV).

Companies Are More Apt to Choose Repurchases Over Dividends If