c. Distribute $1 million through a share buyback program. D. Offer a $0.50 dividend and use the remaining to purchase 50,000 shares. $500,000 4. From a finance perspective, what concern might be raised about conglomerates? A. They gain valuable diversification benefits that create value for their shareholders. B. They are able to horizontally integrate for pricing control. C. Breadth of experience in multiple industries allows for better valuations. D. Shareholders can diversify on their own and do not need the company to do it for them. 5. In October 2016, Microsoft announced a $40 billion share buyback program. Which of the following is a reason shareholders might prefer share buybacks to dividends? (Choose all that apply.) A. Share repurchases can be taxed at a favorable rate compared to dividends (using the capital gains tax rate instead of the income tax rate). B. Share repurchases signal that the its stock is undervalued. c. Dividends dilute the value of existing shares. company thinks Capital Allocatio