Suppose a firm does not pay a dividend but repurchases stock using $28 million of cash, the market value of the firm decreases by ________.
A) $28 million
B) -$28 million
C) 0
D) cannot say for sure

Name: Suppose a firm does not pay a dividend but repurchases stock using $28 million of cash, the market value of the firm decreases by ________. A) $28 million B) -$28 million C) 0 D) cannot say for sure
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Question

Quizplus · Accepted Answer

A) The reduction in cash decreases the market value of the firm's assets by the same amount.

Suppose a Firm Does Not Pay a Dividend but Repurchases