Assume there are no taxes or imperfections

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Assume there are no taxes or imperfections. Given this assumption, which one of the following statements is correct? A cash dividend has no effect on the market price of the payer's stock. A cash dividend decreases shareholder wealth. Stock repurchases decrease the market value per share. Both a cash dividend and a share repurchase increase a firm's PE ratio. A stock repurchase has the same effect on a firm's market value balance sheet as does a cash dividend.

Reference no: EM131065582

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