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6. Your friend is evaluating two different companies which had the same number of shares outstanding before their dividend issuance and share repurchase (with balance
6. Your friend is evaluating two different companies which had the same number of shares outstanding before their dividend issuance and share repurchase (with balance sheets shown above)-one of which has recently paid a dividend while the other one has recently repurchased shares of its outstanding equity. Company paid a dividend while Company repurchased shares. The share price of Company A is while the share price of Company B is If your friend claimed that Company A has a higher overall value, he would be (a) B;A;$15;$15; incorrect (b) A; B; $20;$15; incorrect (c) B; A; $20;$15; correct (d) B; A; $20;$15; incorrect
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