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Which of These Are Reasons Why Some Firms Choose Repurchases

Question 26

Multiple Choice

Which of these are reasons why some firms choose repurchases over dividends?
I.To offset the dilution of ownership caused by the exercising of stock options
II.Repurchases offer more flexibility than dividends
III.Management believes the stock is currently overpriced
IV.Executive ownership of stock options


A) I and II only
B) II and IV only
C) I,II,and IV only
D) II,III,and IV only
E) I,II,III,and IV

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