A company would repurchase its own stock for all of the following reasons except:a. it wishes to prevent unwanted takeover attempts.b. it wishes to increase the earnings per share.c. it believes the stock is overvalued.d. it needs the stock for employee bonuses.

A company would repurchase its own stock for all of the following reasons except:a. it wishes to prevent unwanted takeover attempts.b. it wishes to increase the earnings per share.c. it believes the stock is overvalued.d. it needs the stock for employee bonuses.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter10: Corporate Governance

Section: Chapter Questions

Problem 5Q: How is it possible for an employee stock option to be valuable even if the firms stock price fails...

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Question

A company would repurchase its own stock for all of the following reasons except:
a. it wishes to prevent unwanted takeover attempts.
b. it wishes to increase the earnings per share.
c. it believes the stock is overvalued.
d. it needs the stock for employee bonuses.

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