Share repurchase: Share repurchase is the situation when a corporation purchases back its own shares because the company noticed that the shares are undervalued. This decline the number of shares left and enhances the value of the shares of the corporation. The share repurchases increase the corporation’s earnings for a share.
Dividend: The amount that shareholders receive in
To determine:
The method of cash distribution does not matter shareholders.
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EBK FUNDAMENTALS OF CORPORATE FINANCE
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