Suppose a firm does not pay a dividend but repurchases stock using $20 million of cash.The market value of the firm decreases by:
A) $20 million.
B) -$20 million.
C) 0.
D) $40 million.
E) -$40 million.
Correct Answer:
Verified
Q23: Omicron's enterprise value is closest to:
A)$500 million
B)$900
Q24: A firm has $300 million of assets
Q25: The share price falls when a dividend
Q26: Modigliani and Miller Dividend Irrelevance states that
Q26: What are the different ways a firm
Q27: A firm has $400 million of assets
Q29: With perfect capital markets,investors prefer share repurchases
Q30: Homemade dividend refers to the process by
Q32: What are the characteristics of special dividend?
Q32: When a firm repurchases shares,the supply of
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents