Companies are more apt to choose repurchases over dividends if doing so will enable them to I. take advantage of a market undervaluation of their shares. II. maintain or increase the value of...

Companies are more apt to choose repurchases over dividends if doing so will enable them to

1. I. take advantage of a market undervaluation of their shares.


2. II. maintain or increase the value of executive stock options.


3. III. offset the dilution created by the exercise of executive stock options.


4. IV. distribute revenue increases that are considered temporary or short-term in nature.