Which Three of the Following Correctly Apply to a Share

Multiple Choice

Which three of the following correctly apply to a share buy- back?

A) It can be used so that the company can raise the level of borrowings on its balance sheet.
B) It is a way of reducing the tax burden while maintaining total dividend payments.
C) It can be used when the company is unsure about the sustainability of a possible increase in the normal cash dividend.
D) It is a way to return money, held within the company, to the owners.