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A Fixed Repurchase Strategy

Question 45

Multiple Choice

A fixed repurchase strategy


A) increases a company's market value each time shares are repurchased.
B) can force firms into making negative NPV investments.
C) requires a trustee to oversee and monitor all repurchases.
D) allows managers to repurchase shares only when they believe those shares are undervalued.
E) is easy to verify in a timely manner.

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