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Dividend: The amount that shareholders receive in
Share repurchase: In order to reduce the number of outstanding shares, Company decides to purchase its own shares from the open market. This is called as share repurchase.
Tax Shield: Tax shield refers to a reduction in the taxable income of either the firm or the individual.
To determine:
The dividend per share of if the managers decide to distribute the tax shield as a special dividend instead of repurchasing share.
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Chapter 17 Solutions
EBK FUNDAMENTALS OF CORPORATE FINANCE
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