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% cash dividend,the directors instead chose to repurchase 50 of the outstanding shares.

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The Answer of 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% cash dividend,the directors instead chose to repurchase 50 of the outstanding shares.

Show That a Stock Repurchase Is Conceptually the Same as a Cash