Which of the following statements about share repurchases is (are) necessarily true?
A) A share repurchase shrinks the value of the equity of a firm.
B) An investor who retains his shares when a firm does a share repurchase will own shares that have a greater value after the repurchase is completed.
C) Share repurchases are typically done by firms that are experiencing financial difficulties.
D) Both A and B are true.
Correct Answer:
Verified
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