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If a Company Feels That Its Shares Are Undervalued and It

Question 46

Multiple Choice

If a company feels that its shares are undervalued and it wants to send a signal to the market, the company may:


A) Issue more stock (as allowed under its charter)
B) Decrease regular cash dividends in an attempt to increase share price
C) Repurchase shares
D) Do nothing and wait - the market will realize the undervaluation

Correct Answer:

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