An alternate way to pay investors is when the firm uses cash to buy shares of its own outstanding stock, also known as ________.

Question

Quizplus · Accepted Answer

The alternate way to pay investors described in the question is known as share repurchases. This involves the firm using cash to buy back some of its own outstanding stock from shareholders. Retained earnings refer to profits that are kept within the company instead of being distributed to shareholders, while dividend investment is not a commonly used term to describe any payment method. An initial public offering (IPO) is a process through which a private company becomes a publicly traded company by offering its shares for sale to the general public. Therefore, the best choice for the question is D, share repurchases.

An Alternate Way to Pay Investors Is When the Firm