Stock repurchases have become very popular because they, Financial Management

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Stock repurchases have become very popular because they

1. Underwriters typically receive their compensation as a percentage of the overall issue value. Normally, that percentage will INCREASE as the value of the issue increases.

A. True

B. False

C. Depends on the industry

2. The two major ways by which corporations issue funds to their shareholders are through dividends and stock repurchases. Over the last 30 years, stock repurchases have become much more common.

True or False

3. Stock repurchases have become very popular because they offer the corporation a means of improving their current ratio.

True or False

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