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What Might an Investor Reasonably Expect from a Company with Excess

Question 50

Multiple Choice

What might an investor reasonably expect from a company with excess cash and few internal investment growth opportunities?


A) The company will buy Treasury bills with all the excess cash.
B) The company will split its stock.
C) The company will declare a stock dividend.
D) The company will pay a cash dividend or repurchase some of its own shares.

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