PRIN.OF CORPORATE FINANCE >BI<
PRIN.OF CORPORATE FINANCE >BI<
12th Edition
ISBN: 9781260431230
Author: BREALEY
Publisher: MCG CUSTOM
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Chapter 16, Problem 19PS
Summary Introduction

To determine: The manner in which value company L if it paid $500,000 in cash dividends year in and year out, with no expected growth or decline.

The share repurchase is the strategy by which companies will take back or buy back its own shares from the market place. If the management considered the shares are undervalued the company may buy back its shares.

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