When common stock is repurchased and retired, the underlying motive is to
A. delay taxes.
B. boost the stock’s dividends.
C. distribute the excess cash to the owners.
D. reduce the retained earnings balance.
Answer:C
When common stock is repurchased and retired, the underlying motive is to
A. delay taxes. B. boost the stock’s dividends. C. distribute the excess cash to the owners. D. reduce the retained earnings balance.