Select the best term to complete the sentence. Ansers are either Udervalued or Overvalued

1. Managemenr is likely to repurchase stock if it believes that the stock is ???, this sends postive signals to investors. Udervalued or Overvalued

2. Repurchases are mroe dependable than dividends because the investor wealth does not decrease after a repurchase, whereas the stock price decreases when dividends are distributed. This statement is???

False or True

3. Management tries to maintain consistent, regular dividend distributions to ??? any dividend cuts in the future and prevent a negative signaling effect.

avoid or encourage

4. Repurchases allow investors who need cash to convert their investment in the company into ???

cash or additional stock