Assuming no market imperfections, which of the following will not be affected by a repurchase of shares?
A)assets of the firm.
B)equity of the firm.
C)shares outstanding.
D)price per share.

Question

Quizplus · Accepted Answer

A repurchase of shares reduces the number of shares outstanding, which can increase the price per share if the market perceives the repurchase as a positive signal. However, the price per share itself is not directly affected by the repurchase action.

Assuming No Market Imperfections, Which of the Following Will Not