Which of the following statements regarding a share repurchase is NOT true?

Here are the answers to the multiple-choice questions: 8. Your author identifies the pecking-order model of capital structure as one that describes the order in which firms typically raise capital. The pecking-order theory suggests that firms prefer to use internal financing first, then debt, and finally equity as a last resort. The correct option is D. 9. Which of the following statements regarding a share repurchase is NOT true? A. Share repurchases occur most commonly as open market repurchases. (True) B. The firm typically buys its shares just like any investor would purchase stocks listed on a stock exchange. (True) C. A firm often announces its intention to repurchase a certain number of its shares, say over the upcoming year. (True) D. In most cases, a firm may agree to repurchase shares from a major shareholder at a negotiated price. (False - this describes a targeted share repurchase*, which is less common and often controversial, not "most cases"). The correct option is D. 10. Dividend payments and share repurchases are conceptually equivalent. Both dividend payments and share repurchases return cash to shareholders. From a shareholder's perspective, if taxes and transaction costs are ignored, they can be seen as equivalent ways of distributing profits. The correct option is A. 11. Miller and Modigliani also studied dividend policy and determined that in their world of perfect capital markets (no taxes, no bankruptcy costs, no asymmetric information) that dividend policy DOES matter. In their original proposition (M&M Dividend Irrelevance Theory), Miller and Modigliani argued that in perfect capital markets, dividend policy is irrelevant to the firm's value. Therefore, dividend policy does not matter. The statement says it does* matter, which is false under their perfect market assumptions. The correct option is B. 12. Financial risk is measured by the proportional amount of debt in the firm's capital structure. Financial risk refers to the additional risk placed on common stockholders as a result of the decision to finance with debt. The correct option is D. 13. The principal participants in the financial markets are The core participants are those who provide funds (savers) and those who need funds (borrowers), often facilitated by financial institutions. The correct option is B. 14. Firms that wish to raise funds for investment purposes issue securities in the primary markets. Primary markets are where new securities are issued for the first time by firms to raise capital. The correct option is B. 15. Secondary markets.... A. function as a place for smaller, less well-known firms to issue securities. (Incorrect, this is primary market) B. are an important vehicle for established firms to raise additional money for expansion. (Incorrect, this is primary market) C. are a means by which funds are cycled from savers to borrowers. (Incorrect, this describes the overall financial market function, but secondary markets specifically deal with existing securities) D. are concerned with the trading of previously issued securities between investors. (Correct) The correct option is D. What's next?