One method of repurchasing shares is the ________,in which the firm lists different prices at which it is prepared to buy shares,and shareholders in turn indicate how many shares they are willing to sell at each price.
A)tender offer
B)Dutch auction share repurchase
C)targeted repurchase
D)open market share repurchases

Question

Quizplus · Accepted Answer

The Dutch auction share repurchase method involves the firm listing different prices at which it is prepared to buy shares, and shareholders indicating how many shares they are willing to sell at each price. The prices are then ranked from highest to lowest, and the firm buys back shares starting from the lowest price until it has reached its target number of shares or exhausted its repurchase budget. This method is efficient and transparent, as it allows the company to repurchase shares at the lowest possible price while ensuring that all willing shareholders get a fair price for their shares.

One Method of Repurchasing Shares Is the ________,In Which the Firm