Which of the following is NOT a possible result of a stock repurchase?
A) Removing a large number of shares from circulation can change the ability of certain shareholders to control the firm.
B) If the number of remaining shares is relatively small, the remaining shares will be less liquid.
C) The company will decrease its leverage ratio (debt-to-equity ratio).
D) By repurchasing stock when it is undervalued, managers can effectively transfer value from selling stockholders to stockholders who don't take part in the repurchase.
Answer: C
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