The effect of a stock repurchase is not equivalent to that of a cash dividend.

Name: The effect of a stock repurchase is not equivalent to that of a cash dividend.
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Quizplus · Accepted Answer

A stock repurchase and a cash dividend both return capital to shareholders, but they do so in different ways. However, they can be equivalent in terms of the impact on shareholder value, as both reduce the company's cash reserves and can increase the value of remaining shares.

The Effect of a Stock Repurchase Is Not Equivalent to That