Question

In: Finance

Which of the following repurchasing method definitions is NOT correct? Select one: a. Selective Buy-Backs: The...

Which of the following repurchasing method definitions is NOT correct? Select one: a. Selective Buy-Backs: The firm makes repurchase offers privately to some shareholders. b. Employee Share Scheme Buy-Back: The company repurchases shares held by employees. c. Repurchase Put Rights: The firm announces that it will repurchase a number of shares at a set price. d. Open Market: The firm buys its stock on the open market from shareholders.

Solutions

Expert Solution

  1. Selective Buy-Backs: The firm makes repurchase offers privately to some shareholders.

This statement is correct as in Selective Buy-Backs offer the firm makes repurchase offers privately to some shareholders only.

  1. Employee Share Scheme Buy-Back: The company repurchases shares held by employees.

This statement is correct as Employee Share Scheme Buy-Back option is available for the shares held by employees or for the employees or the directors of the company whoever is getting salary from the company.

  1. Repurchase Put Rights: The firm announces that it will repurchase a number of shares at a set price.

This statement is not correct as the put rights are the right of the seller of shares to purchase at a certain price, which is set ahead of time. The company can repurchase shares at that price only if it has put right on shares.

d. Open Market: The firm buys its stock on the open market from shareholders.

This statement is also correct as whenever the prices are favorable; the firm can buy its stock on the open market from shareholders

Therefore right option is option c.

jeff jeffy answered 1 year ago
Next > < Previous

Related Solutions

A. Definitions and history of money Select the correct term for each of the following definitions....
A. Definitions and history of money Select the correct term for each of the following definitions. Terms include, MONEY, MONEY MARKET DEPOSIT ACCOUNT AND TIME DEPOSIT Definition Term An interest-earning account, at a commercial bank or thrift institution, that requires a minimum balance and offers limited check-writing privileges    An interest-earning deposit with a specified maturity date    Any good that is widely accepted for purposes of exchange and in the repayment of debt    Which of the following statements...
47. Which of the following statements are correct? Select which option is correct. Select one or...
47. Which of the following statements are correct? Select which option is correct. Select one or more: The level of professional skepticism can be reduced where the auditor has past experience with the entity indicating the honesty and integrity of management. The level of professional skepticism needs to be maintained throughout the whole engagement. Professional skepticism implies an expectation of fraud or error, so is a biased viewpoint. Professional skepticism is not important in considering management's explanations for unusual trends...
Which of the following statements are correct (Select all that apply): Select one or more: A....
Which of the following statements are correct (Select all that apply): Select one or more: A. An income statement reports on financing activities. B. A balance sheet reports on investing and financing activities. C. The statement of cash flows reports on cash flows from operating, investing, and financing activities over a period of time. D. A balance sheet reports on a company's assets and liabilities over a period of time. E. The statement of equity reports on changes in the...
Which of the following statements are correct (Select all that apply): Select one or more: A....
Which of the following statements are correct (Select all that apply): Select one or more: A. A balance sheet reports on investing and financing activities. B. An income statement reports on financing activities. C. The statement of equity reports on changes in the accounts that make up equity. D. The statement of cash flows reports on cash flows from operating, investing, and financing activities over a period of time. E. A balance sheet reports on a company's assets and liabilities...
Which of the following statements is correct? Select one: a. A line of credit is an...
Which of the following statements is correct? Select one: a. A line of credit is an agreement between a bank and a customer under which the bank guarantees the customer a fixed dollar amount of loan. b. Banks issue commercial paper for raising funds for long periods c. Securitisation of loans reduces banks’ capital requirements. d. The principal source of funds for banks is through the issue of debt securities.
Which of the following is correct in the cases of the Option contracts? Select one: a....
Which of the following is correct in the cases of the Option contracts? Select one: a. None of these b. Option buyer’s gains can be limited c. Option writer’s losses can be unlimited d. Option writer’s gains can be unlimited e. Option buyer’s losses can be unlimited
When a home currency depreciates, which one of the following is NOT correct? Select one: a....
When a home currency depreciates, which one of the following is NOT correct? Select one: a. home exporters have more advantages than home importers b. home importers have more advantages since it takes more home currency to buy the foreign currency c. a foreign currency is more valuable than the home currency d. the home currency has less purchasing power in the world trade markets
Which one of the following is NOT correct for biophysical system? Select one: a. Biophysical systems...
Which one of the following is NOT correct for biophysical system? Select one: a. Biophysical systems can neither create nor destroy energy. b. Will reach thermal equilibrium during their lifetime c. Biophysical processes removed from equilibrium will produce an increase in entropy. d. When biophysical systems, including physiological ones, have an increase in energy produced by ordering the local environment, there must be a greater decrease in energy in the energy of the universe e. Biophysical systems in living organisms...
Which of the following statements is MOST CORRECT? Select one: a. It is easier to transfer...
Which of the following statements is MOST CORRECT? Select one: a. It is easier to transfer one's ownership interest in a partnership than in a corporation. b. Although stockholders of the corporation are insulated by limited legal liability, the legal status of the corporation does not protect the firms? managers in the same way. c. One of the disadvantages of the corporate form of organization is that it has double taxation. d. In part due to limited liability and ease...
Which of the following is correct? Select one: a. Overtime premiums should be treated as a...
Which of the following is correct? Select one: a. Overtime premiums should be treated as a component of Direct labour b. overtime premium should be accounted for as a special type of loss. c. Idle time should be treated as a component of manufacturing overhead. d. Both "a" and "c" are correct
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT