Kizspy | Question: 27 (Choose 1 answer)
Which of the following is NOT a possible result of a stock repurchase?
A. Removing a large number of shares from circulation can change the ability of certain shareholders to control the firm.
B. If the number of remaining shares is relatively small, the remaining shares will be less liquid.
C. The debt-to-equity ratio will be increased.
D. By repurchasing stock when it is undervalued, managers can effectively transfer value from stockholders who choose to sell their shares to stockholders choose to remain invested in the company.
