All of the following are typical benefits of stock repurchasesexcept a. preserva

Question

All of the following are typical benefits of stock repurchasesexcept a. preservation of cash to be used for dividends. b. reduction in the firm's costs associated withservicing small stockholders. c. a means for providing an internal investmentopportunity. d. an approach for modifying the firm's capitalstructure. All of the following are typical benefits of stock repurchasesexcept a. preservation of cash to be used for dividends. b. reduction in the firm's costs associated withservicing small stockholders. c. a means for providing an internal investmentopportunity. d. an approach for modifying the firm's capitalstructure.

Explanation / Answer

Answer is (b) reduction in the firm's costs associatedwith servicing small stockholders.

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