AFP
CTP · Question #92
(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…
The correct answer is D. Repurchase shares of outstanding stock. See the full explanation below for the reasoning.
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.
How the community answered
(54 responses)- A15% (8)
- B4% (2)
- C7% (4)
- D74% (40)
Community Discussion
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