Which of the following statements concerning stock repurchases is MOST correct?
A) Increasingly companies are using stock repurchases to distribute cash to their shareholders, but dividends remain the primary means to distribute cash.
B) Companies currently spend more money on stock buybacks than on dividend payments.
C) Repurchasing stock is strictly a financing decision made by the corporation.
D) A tender offer is the only way to complete a stock repurchase due to SEC rules.

Question

Quizplus · Accepted Answer

Companies have been increasingly using stock buybacks as a method to return cash to shareholders, and in recent years, the amount spent on buybacks has often surpassed the amount distributed through dividends. This trend reflects a strategic preference for flexibility in returning value to shareholders and managing dilution.

Which of the Following Statements Concerning Stock Repurchases Is MOST