Sharon works for a cereal manufacturing company. Her company recently built a manufacturing facility in canada and agreed to take 15 percent of the cereal produced as partial payment over a ten-year period. What form of countertrade is her company pursuing?.
Buyback form of countertrade is her company pursuing.
What is Buyback?
The act of a corporation purchasing its own outstanding shares, commonly referred to as a "buyback" or "share repurchase," is done to lessen the number of shares that are traded publicly.
Companies repurchase shares for a variety of purposes, including to boost the value of the remaining shares by lowering the supply or to stop other shareholders from acquiring a majority ownership.
Repurchases lower the outstanding share count, increasing (positive) earnings per share and frequently stock value.
A share repurchase can show investors that a company has enough cash on hand to cover unexpected expenses and a low likelihood of financial difficulties.
