TOPIC 3 - PART A

What are redeemable preference shares?

• Shares that have no fixed dividend payment

• Shares that cannot be redeemed by the issuing company

• Shares that can be repurchased by the issuing company after a specified period

• Shares that can only be redeemed by shareholders

What is share buyback also known as?

• Share repurchase

• Share issuance

• Dividend payment

• Stock split

What happens to earnings per share (EPS) after a share buyback?

• Increases

• Becomes negative

• Remains the same

• Decreases

What is a benefit of share buybacks?

• Reduces earnings per share

• Signals lack of confidence

• Signals confidence

• Increases liquidity

What does share buyback allow a company to do with excess cash?

• Distribute as dividends

• Invest in new projects

• Return value to shareholders

• Hold in reserve