A company is planning a share buyback.

Vendor: CIMA
Product: F3
Update on: Jul 29, 2025
Questions: 435

CIMA F3 Question Answer

A company is planning a share buyback. In which of the following circumstances would a share buyback be appropriate?

The company wants to reduce its gearing.

The company wants to reduce the nominal value of its shares to make them more marketable.

The country in which the company operates taxes capital gains at a higher rate than income.

The company has a one off cash surplus and no available investment opportunities.

CIMA F3 Summary

Price: $52.5 ~~$149.99~~