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2014 April

R

Robert

Very Active Member
2014 April no 5
A company has a substantial cash balance for which it has no immediate use. Which of the following would NOT be a valid reason for it to release this cash to shareholders by means of a repurchase rather than a dividend?


A potential tax advantages to the company
B potential tax advantages to the shareholders
C provision of an exit opportunity for a provider of startup equity
D the repurchase can be scheduled for any time of year

can i know why the answer is A why C is not suitable as the answer ?
 
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