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Ignore Commissions,taxes,and Other Imperfections

Question 38

Multiple Choice

Ignore commissions,taxes,and other imperfections.If a firm substitutes a repurchase for a cash dividend,the primary difference will be an increase in the:


A) earnings per share.
B) total value received by each investor.
C) total earnings of the firm.
D) excess cash reserves of the firm.
E) number of shares outstanding.

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