When common stock is repurchased and retired,the underlying motive is to ________.
A)delay taxes
B)boost the stock's dividends
C)distribute cash to the owners
D)reduce the retained earnings balance

Question

Quizplus · Accepted Answer

Repurchasing and retiring common stock is a way for a company to distribute cash to its shareholders, as it reduces the number of shares outstanding and can increase the value of remaining shares.

When Common Stock Is Repurchased and Retired,the Underlying Motive Is