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Business, 15.11.2019 06:31 kryoung08

6. stock repurchases. payout corp. has regularly paid a quarterly dividend of $.50 per share on its 20,000 outstanding shares. now suppose that payout announces that instead of paying this dividend, it plans to repurchase $10,000 worth of stock instead. a. what effect will the repurchase have on an investor who currently holds 100 shares and sells 1 of those shares back to the company in the repurchase? b. compare the effects of the repurchase to the effects of the cash dividend that you worked out in problem 5.

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6. stock repurchases. payout corp. has regularly paid a quarterly dividend of $.50 per share on its...
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