Tender offer repurchase is a repurchase program in which a firm ________.
A) offers to repurchase a fixed number of shares, usually at a discount relative to the market value
B) offers to repurchase a fixed number of shares, usually at a premium relative to the market value
C) offers to repurchase a fixed number of shares, usually at par relative to the market value
D) has a right to repurchase a fixed number of shares at a premium relative to the market value

Question

Quizplus · Accepted Answer

In a tender offer repurchase, a firm offers to buy back a fixed number of its own shares from shareholders at a price typically above the current market value, which is referred to as a premium. This method is used to return cash to shareholders or to reduce the number of shares outstanding, potentially increasing the value of remaining shares.

Tender Offer Repurchase Is a Repurchase Program in Which a Firm