Question
Assume a perfect capital market. Which of the following values tends to increase if a company uses excess cash to buy back shares? a. Total
Assume a perfect capital market. Which of the following values tends to increase if a company uses excess cash to buy back shares?
a.
Total equity value
b.
The number of shares
c.
Total earnings
d.
The required return of equity/ROE
e.
Share price
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Investment Management
Authors: Stephen Lofthouse
2nd Edition
047149237X, 9780471492375
