Whether the manager is likely to repurchase shares and if the value of stocks are undervalued or overvalued. Introduction: Share repurchase is an alternative method to pay the cash to the company’s investors by way of buying back of shares. Stock repurchase is where the company purchases its own shares, which is still outstanding.

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Chapter 17.6, Problem 2CC

Summary Introduction

To discuss: Whether the manager is likely to repurchase shares and if the value of stocks are undervalued or overvalued.

Introduction:

Share repurchase is an alternative method to pay the cash to the company’s investors by way of buying back of shares. Stock repurchase is where the company purchases its own shares, which is still outstanding.

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