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Which one of the following statements is correct? A. Asymmetric information causes the increase of stock prices B. When a firm repurchases stocks, the EPS
Which one of the following statements is correct?
A. | Asymmetric information causes the increase of stock prices | |
B. | When a firm repurchases stocks, the EPS increases because of the improvement of its profitability | |
C. | Share repurchases tend to increase agency costs | |
D. | Cash dividend is not beneficial for stork owners because a stock price goes down | |
E. | Under the assumptions of no taxes and no market imperfection, the impact of stock repurchases and that of cash dividend on a firm value are identical |
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