With perfect capital markets, an open market repurchase increases the stock price as the number of outstanding shares is decreased.

Name: With perfect capital markets, an open market repurchase increases the stock price as the number of outstanding shares is decreased.
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In perfect capital markets, an open market repurchase does not affect the stock price because the reduction in the number of shares is offset by the reduction in cash, leaving the firm's value unchanged.

With Perfect Capital Markets, an Open Market Repurchase Increases the Stock