QUESTION 19 In class, we talked about an interesting trend that is happening in the business world: Besides paying dividends, share repurchase/buyback has become an increasingly popular way for companies to give back earnings to their shareholders. When a company repurchase a large amount of its own shares in the stock market: OA. It tends to reduce the number of shares outstanding held by the public OB. It tends to reduce its stock price Olt tends to increase the number of shares outstanding held by the public OD. It tends to reduce its key accounting numbers, such as EPS, and ROA. QUESTION 20 Mortgages have a secondary market O A True OB. False QUESTION 21 In the world of securitization of mortgages, a CMO is a structured Mes where investor tranches have different rights to different sets of cash flows think champagne fountain). This was created to protect the investor from: O A No-Doc risk OB. Re-sale risk OC Default risk OD. Prepayment risk