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CTP · Question #92
CTP Question #92: Real Exam Question with Answer & Explanation
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Question
- (Topic 1) abnormally high profits this year. After paying mandatory principal, interest, and taxes, the company has $200 million in surplus cash on hand. Assuming its investor base is most concerned with capital appreciation, which of the following is the BEST option for the company?
Options
- ADeclare a special dividend.
- BReinvest cash into the company.
- CDeclare a cash dividend.
- DRepurchase shares of outstanding stock.
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