Which of the following is a reason why management may prefer repurchase offers over cash dividends?
A) Repurchases signal earnings predictability.
B) Once corporations begin paying dividends, they become a legal obligation but repurchase offers do not.
C) Repurchase agreements allow management greater flexibility in deciding how much cash to distribute.
D) All of the above

Question

Quizplus · Accepted Answer

Repurchase agreements offer management more flexibility in terms of the amount of cash to distribute to shareholders, as they can decide the scale and timing of repurchases based on the company's financial situation and strategic needs.

Which of the Following Is a Reason Why Management May