Which one of the following statements related to stock repurchases is correct?
A) U.S. industrial firms have increased their stock repurchases every year for each of
the past 20 years.
B) The tax law change in May 2003 led to a huge increase in stock repurchases and a
reduction in dividend payments.
C) A tender offer indicates that a company is willing and able to purchase as many
shares as shareholders wish to sell.
D) All stock repurchases must be identified as such to the selling party.
E) Stock repurchases can be a relatively tax-efficient method of distributing cash to
shareholders