Corporate Finance
Corporate Finance
3rd Edition
ISBN: 9780132992473
Author: Jonathan Berk, Peter DeMarzo
Publisher: Prentice Hall
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Chapter 17.2, Problem 1CC
Summary Introduction

To discuss: Whether the price that rises under the repurchase of firm’s own shares, because of a decrease in the supply of outstanding shares is true or false.

Introduction:

Share repurchase is an alternative method used to pay the cash to the company’s investors by the way of buy back of shares. When a company purchases its own shares, which remains outstanding, it is known as stock repurchases.

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Corporate Finance

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