Stock instead of paying a dividend

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Problem:

"If a company repurchases stock instead of paying a dividend, the number of shares falls and earnings per share rise. Thus stock repurchase must always be preferred to paying dividends."

Additional Information:

This question is basically belongs to the Finance as well as it discuses about the statement and whether or not it is agreeable. The statement is about stock repurchase vs paying dividends.

Reference no: EM13825931

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