With a stock repurchase:

Question

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With a stock repurchase, the company buys back some of its own stock, which can lead to an increase in the price per share. This is because a reduction in the number of shares outstanding increases the value of each remaining share. However, no cash flow is extended from the company and shareholders' ownership in the company may or may not decrease depending on whether they sell some of their shares or not. The equity of the firm may or may not increase depending on the specifics of the transaction.

With a Stock Repurchase