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Mugsy Corporation has been successful financially in the past 3 years and is considering a repurchase of its own common stock that has been previously

Mugsy Corporation has been successful financially in the past 3 years and is considering a repurchase of its own common stock that has been previously issued since they believe the stock is undervalued.Mugsy wishes to repurchase a target number of shares which has a final repurchase price determined by the average market price over a fixed period of time. As Mugsy's CFO,discuss the benefits of thisas well as the proper accounting regulations that specify this accounting treatment.

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