Which of the Following Is Not True Regarding a Company's

Multiple Choice

Which of the following is not true regarding a company's repurchase of its own stock?

A) All other things equal, the repurchase of stock should increase its market price.
B) Companies will only consider repurchasing their stock if they think it is undervalued.
C) Companies can repurchase their stock on the open market.
D) Companies can make a tender offer to current stockholders, normally at a premium.
E) If too many stockholders accept a tender offer, the company can buy a pro rata share of those each stockholder offered.