Suppose a Firm Does Not Pay a Dividend but Repurchases

question 60

Multiple Choice

Suppose a firm does not pay a dividend but repurchases stock using $28 million of cash, the market value of the firm decreases by ________.

• A) $28 million
• B) -$28 million
• C) 0
• D) cannot say for sure

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Definitions:

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Punch Line

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Compatible Hypnotist

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