Which of the following is not a reason that companies may undertake a share buy-back?
A) as a defence against a hostile takeover;
B) to manage the capital structure;
C) to increase the worth per share of the remaining shares;
D) as a way to efficiently manage surplus funds.

Question

Quizplus · Accepted Answer

A share buy-back is often used by companies to manage their capital structure, increase the worth per share of the remaining shares, and as a way to efficiently manage surplus funds. It is not typically used as a defense against a hostile takeover.

Which of the Following Is Not a Reason That Companies