True/False and Why:
1. ESOP’s should be undertaken as a least cost incentive for employees to stick with the firm and grow it.
2. Stock buybacks should be considered with other alternative investments, using the same criteria of payback, NPV or IRR.
3. Buybacks can be used to maintain a certain stock price range.
4. Buybacks are placed into treasury stock and can be used later as currency for acquisition.