Discuss the concept of the signaling theory

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Question 1: Apple Incorporated (AI) board of directors has indicated that they will repurchase AI's stock effective July 1st 2020. You currently hold 100 AI's stock. Explain in detail, the concept of "information content" to be derived from the board of director's pronouncement. Discuss the likely impact of this pronouncement to AI's stock price? In respect of this announcement, discuss the concept of the "signaling theory" and how will managers of AI be placed in an advantageous position ahead of the normal investor?

Reference no: EM132565808

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