Which of the following statements is correct?
A) Investors rightly prefer repurchases because the reduced number of shares increases earnings per share.
B) Companies with large repurchase programs usually finance them by a cut in dividends.
C) Companies pay out as dividends whatever is left over after making needed capital investments.
D) A stock repurchase does not increase stock price but it does avoid the fall in price that would occur on the ex-dividend date.

Question

Quizplus · Accepted Answer

The Answer of Which of the following statements is correct?
A) Investors rightly prefer repurchases because the reduced number of shares increases earnings per share.
B) Companies with large repurchase programs usually finance them by a cut in dividends.
C) Companies pay out as dividends whatever is left over after making needed capital investments.
D) A stock repurchase does not increase stock price but it does avoid the fall in price that would occur on the ex-dividend date.

Which of the Following Statements Is Correct