Describe at least three reasons why a corporation would want to buy back its own stock
A company may want to buy back its own stock for any of the following reasons:
1. To distribute to employees through stock option plans.
2. To maintain a favorable market for its stock.
3. To increase its earnings per share or stock price per share.
4. To have additional shares of stock available for purchasing other companies.
5. To prevent a hostile takeover.
You might also like to view...
To help deal with some of the emotion that has surfaced during the second meeting, group leader Kathy might
A) call for a standup meeting, which will probably shorten debate. B) ask that each person with a strong preference for either type of rental space, fully express his or her opinion including facts and feelings. C) explain that since this is a law firm, only facts, not feelings, can be entered into debate. D) explain to the group that disagreement on major issues is dysfunctional (harmful).
Problems of multinationals include
A) global control. B) cash management and positioning of funds. C) managing receivables. D) all of the above.