Which one of the following statements related to stock repurchases is correct?

The dividend market is in equilibrium when:    A.  all firms adopt a low dividend policy. B.  half of the firms adopt a low dividend policy and half adopt a high dividend policy. C.  all clienteles are satisfied. D.  dividends remain constant and no special dividends are declared. E.  the total amount of the annual dividends is equal to the net income for the year. Refer to section 17.5

33.

Which one of the following statements related to stock repurchases is correct?    A.  An open market stock repurchase increases the total wealth of a shareholder if you ignore taxes, costs, and market imperfections. B.  Targeted repurchases must be offered to all shareholders but can be done in steps such that only a portion of the shareholders have the option to sell at any one point in time. C.  When a firm wishes to repurchase shares in the open market, it will do so in a special trading session that is set up by the SEC. D.  A firm may spend more cash over the course of a year on stock repurchases than it does on cash dividends. E.  Tender offer prices must be set equal to the opening market price on the day the tender offer is announced. Refer to section 17.6

34.

Which one of the following statements related to stock repurchases is correct?    A.  U.S. industrial firms have increased their stock repurchases every year for each of the past twenty years. B.  A stock repurchase can be used as a means for incumbent officers to retain control of a firm. C.  A tender offer indicates that a firm is willing and able to purchase how ever many shares the current shareholders wish to sell. D.  All stock repurchases must be identified as such to the selling party. E.  Stock repurchases can be a relatively tax-efficient method of distributing cash to shareholders. Refer to section 17.6

35.

A stock repurchase program:    A.  requires all shareholders to sell a fraction of their shares. B.  is preferred over a high-dividend program only by tax-exempt shareholders. C.  decreases both the number of shares outstanding and the market price per share. D.  has no effect on a firm's financial statements. E.  is essentially the same as a cash dividend program provided there are no taxes or other costs. Refer to section 17.6

36.

Which one of the following is a result of a stock repurchase?    A.  increase in the number of shares outstanding B.  increase in the market price per share C.  increase in the total equity of the repurchasing firm D.  decrease in EPS E.  PE ratio equal to that resulting from a comparable cash dividend Refer to section 17.6