关于3

问题如下：

Carlyle asks her assistant, Richard Lee, to investigate whether Avignon might use its surplus cash for a share repurchase rather than for dividends. Lee, a junior analyst, comments that share repurchases can be beneficial for several reasons:

• Statement 1: The distribution of cash among shareholders is equivalent to what would have otherwise been distributed to them as dividends.
• Statement 2: Share repurchases provide greater flexibility to management than the payment of cash dividends.
• Statement 3: When directly negotiated, share repurchases can be used to purchase stock for less than the current market price.

Which of Lee’s statements to Carlyle about share repurchases is least accurate?

选项：

A.

Statement 2

B.

Statement 1

C.

Statement 3

解释：

Statement 1 is least accurate. Although the amount of cash distributed is the same, only those shareholders who have their shares purchased by the company will receive any cash.

A is incorrect. Statement 2 is correct. Management is not obligated to follow through after stating an intention to repurchase shares, whereas they must meet a declared dividend statement.

C is incorrect. Statement 3 is correct. Research showed that 45% of private repurchases between 1984 and 2001 were actually made at discounts, indicating that many direct negotiation repurchases are generated by the liquidity needs of large investors who are in a weak negotiating position.