Question #8
Reading: Reading 15 Analysis of Dividends and Share Repurchases
PDF File: Reading 15 Analysis of Dividends and Share Repurchases.pdf
Page: 4
Status: Unattempted
Correct Answer: A
Question
A company is most likely to use a Dutch auction when repurchasing shares:
Answer Choices:
A. with a tender offer
B. in the open market
C. by direct negotiation
Explanation
In a tender offer, the company may either select a price or use a Dutch auction to
determine the lowest price at which it can repurchase the number of shares desired.