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g Which one of the following statements related to stock repurchases is correct? D) A company may spend more cash over the course of a year on stock repurchases than it does on cash dividends B) Targeted repurchases must be offered to all shareholders but can be done in steps such that only a portion of the shareholders have the option to sell at any one point in time. E) Tender offer prices must be set equal to the opening market price on the day the tender offer is announced A) An open market stock repurchase increases the total wealth of a shareholder if you ignore taxes, costs, and market imperfections. C) When a company wishes to repurchase shares in the open market, it will do so in a special trading session that is set up by the SEC

Respuesta :

Answer: A company may spend more cash over the course of a year on stock repurchases than it does on cash dividends

Explanation:

Stock repurchase or stock buyback occurs when the shares of a company are bought back from the market by the same company using its accumulated cash.

It's simply a way by which companies re-invest in themselves. It should be noted that a company may spend more cash over the course of a year on stock repurchases than it does on cash dividends.