Which of these factors is not a motivation for share repurchases:
A) offset the exercise of executive stock options
B) repurchase dissident shares
C) take the firm private
D) to reduce the firm's levels of debt

Question

Quizplus · Accepted Answer

Share repurchases are typically not done to reduce the firm's levels of debt. Instead, firms may choose to issue new equity or use other strategies to manage their debt levels. The other three factors - offsetting the exercise of executive stock options, repurchasing dissident shares, and taking the firm private - are all motivations for share repurchases.

Which of These Factors Is Not a Motivation for Share