If you ignore taxes and transaction costs, a stock repurchase will?
I. reduce the total assets of a firm.
II. increase the earnings per share.
III. reduce the PE ratio more than an equivalent stock dividend.
IV. reduce the total equity of a firm.
A. I and III only
B. II and IV only
C. I, II, and IV only
D. I, III, and IV only
E. I, II, III, and IV
The question belongs to Finance and it discusses about stock repurchase that can occur under certain circumstances, if we ignore taxes and transaction costs.
Total Word Count 38
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