[Shahin]

Tommy, can you share your MCQs answers.

[Shahin]

Tommy, Yes i remember but i cant remember variant A. ? think variand D correct. (Accounting profits can be manipulated to some extent by choices of accounting policies(From BBP))

[Shahin]

Please share your MCQs answers for the compare.

1A
2C
3D
4A
5B
6D
7C
8C
9B
10B
11C
12C
13C
14A
15B
16D
17C
18C
19D
20A

[Shahin]

I think the answer of Q5 is B.

[Shahin]

2.6.1 Benefits of a share repurchase scheme
(a) Finding a use for surplus cash, which may be a ‘dead asset’.
(b) Increase in earnings per share through a reduction in the number of shares in issue. This should
lead to a higher share price than would otherwise be the case, and the company should be able to
increase dividend payments on the remaining shares in issue.
(c) Increase in gearing. Repurchase of a company’s own shares allows debt to be substituted for
equity, so raising gearing. This will be of interest to a company wanting to increase its gearing
without increasing its total long-term funding.
(d) Readjustment of the company’s equity base to more appropriate levels, for a company whose
business is in decline.
(e) Possibly preventing a takeover or enabling a quoted company to withdraw from the stock market.

[Shahin]

I think q5 and q18 answers are wrong.

[Author]

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