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Required: a. What is the effect on the stock price when a firm repurchases its shares under perfect capital markets? [2 marks] b. Do you
Required: a. What is the effect on the stock price when a firm repurchases its shares under perfect capital markets? [2 marks] b. Do you agree with the statement "In Australia, the date on which a firm pays out dividends is called the ex dividend date"? Explain. (2 marks) c. You have been provided the following data about 4 shares (this data was gathered from a sample over the period 2017-2021). Security Expected Return Standard Deviation Coefficient of Variation A 13.0% 5.28% 0.41 9.80% 1.80% 0.18 6.20% 18.75% 3.02 D 1.30% 12.38% 9.52 i. Identify which security you would suggest investing funds in if you had to select only one? You need to justify your answer, explaining how you derived your decision. [2 marks] ii. Provide a definition of the 'coefficient of variation' and explain its use in this given context [2 marks] B Marks C
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