6. A company is considering either an open market share repurchase or a cash dividend of an equal amount. Compared to th

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answerhappygod
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6. A company is considering either an open market share repurchase or a cash dividend of an equal amount. Compared to th

Post by answerhappygod »

6. A company is considering either an open market share
repurchase or a cash
dividend of an equal amount. Compared to the open market share
repurchase,
the cash dividend is most likely to:
A. increase a shareholder's wealth by a greater amount.
B. increase a shareholder's wealth by a lesser amount.
C. have a relative impact that depends on the tax treatment of
the two
alternatives.
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