Stock repurchases may be used for all of the following except:
A) a means for providing an internal investment opportunity.
B) to improve earnings per share.
C) to decrease the corporation's debt ratio.
D) to eliminate a minority ownership group of stockholders.

Question

Quizplus · Accepted Answer

Stock repurchases are typically used to improve earnings per share or to eliminate a minority ownership group of stockholders. They may also be used to provide an internal investment opportunity, although this is less common. However, stock repurchases do not directly affect the corporation's debt ratio.

Stock Repurchases May Be Used for All of the Following