CIMAPRA19-F03-1 practice question 27 of 35
A company has accumulated a significant amount of excess cash which is not required for investment for the foreseeable future. It is currently on…
Choose your answer, then check it against the explanation.
A company has accumulated a significant amount of excess cash which is not required for
investment for the foreseeable future.
It is currently on deposit, earning negligible returns.
The Board of Directors is considering returning this excess cash to shareholders using a share
repurchase programme.
The majority of shareholders are individuals with small shareholdings.
Which THREE of the following are advantages of the company undertaking a share repurchase
programme?
Question 27 of 35
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