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There are two ways a corporation can distribute cash to its shareholders: by paying a cash dividend or by repurchasing the company's shares in the
There are two ways a corporation can distribute cash to its shareholders: by paying a cash dividend or by repurchasing the company's shares in the stock market. When a company pays a cash dividend, all shareholders receive cash in amounts proportional to the number of shares they own. In a share repurchase, the company pays cash to buy shares of its stock in the stock market, thereby reducing the number of share outstanding. (15 points) Consider a balance sheet of the CP public company Assets Liabilities and Shareholder's equity Cash Debt 52 Other assets Equity $10 Unit: Million
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