If you ignore taxes and transaction costs, a stock repurchase will reduce the total assets of a ﬁrm.

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A stock repurchase reduces the number of outstanding shares, which in turn decreases the equity value of the company. This reduction in equity value will result in a decrease in the total assets of the firm. However, taxes and transaction costs may affect the overall impact of the stock repurchase on the firm's assets.

If You Ignore Taxes and Transaction Costs, a Stock Repurchase