Which one of the following statements related to stock repurchases is correct? D) A company may spend more cash over the course of a year on stock repurchases than it does on cash dividends B) Targeted repurchases must be offered to all shareholders but can be done in steps such that only a portion of the shareholders have the option to sell at any one point in time. E) Tender offer prices must be set equal to the opening market price on the day the tender offer is announced A) An open market stock repurchase increases the total wealth of a shareholder if you ignore taxes, costs, and market imperfections. C) When a company wishes to repurchase shares in the open market, it will do so in a special trading session that is set up by the SEC

Share Repurchases are usually done at a premium to the market price of the share to entice shareholders to sell their stock. Share prices are already significantly higher than dividends so when a company buys back shares with a premium on top, they will spend significantly more money acquiring the shares than on dividends on a per share basis.

If the company intends on repurchasing a significant number of stock, they will probably spend more on this than they would on dividends.

Added to that is that share repurchases reduce a company's cash reserve which is where dividends are paid from so more repurchases could translate to less dividends.