Show that a stock repurchase is conceptually the same

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Reference no: EM131984700

Show that a stock repurchase is conceptually the same as a cash dividend using the following example: Repo Corp. has 1,000 shares outstanding at a market price of $20 per share.

In debating whether to declare a 5 percent cash dividend, the directors instead chose to repurchase 50 of the outstanding shares.

Reference no: EM131984700

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Show that a stock repurchase is conceptually the same : In debating whether to declare a 5 percent cash dividend, the directors instead chose to repurchase 50 of the outstanding shares.

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