Which statement is correct regarding stock repurchases

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Problem 1: Which statement is correct regarding stock repurchases:

1. Repurchases have a tax advantage over dividends as a way to distribute dividend income to stockholders

2. Repurchaes are more effective that cash dividends in order to maintain a stable capital structure.

3. repurchase announcements are normally viewed as nagative market signals because of the high proce of repurchasing stock.

4. all the answers are correct.

Reference no: EM132904707

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