Whether repurchasing own stock makes sense for a corporation. Introduction: Share Repurchase: A transaction in which a corporation reacquires its own shares from the market directly or by offering a choice to shareholders to tender their shares at fixed prices to the company is termed as share repurchase or buyback.

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Chapter 18, Problem 10DQ

Summary Introduction

To explain: Whether repurchasing own stock makes sense for a corporation.

Introduction:

Share Repurchase:

A transaction in which a corporation reacquires its own shares from the market directly or by offering a choice to shareholders to tender their shares at fixed prices to the company is termed as share repurchase or buyback.

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