Which of these were identified as the two drawbacks of a fixed repurchase strategy?
I.The repurchase could be a negative net present value investment
II.Lack of a monitoring mechanism to ensure the repurchase was completed
III.The extra tax burden the strategy places on shareholders
IV.The increased agency problems that result from such a strategy

Question

Quizplus · Accepted Answer

Option I and II were the only drawbacks identified for a fixed repurchase strategy. Option III talks about an extra tax burden that doesn't apply to a fixed repurchase strategy, and option IV talks about increased agency problems, which are not mentioned in the passage in relation to fixed repurchase strategies.

Which of These Were Identified as the Two Drawbacks of a Fixed