Consider the following statements: Statement 1: If the stock price is lower than the book...
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Finance
Consider the following statements:
Statement 1: If the stock price is lower than the book value per share, a companys book value per share will increase after a share repurchase.
Statement 2: There is a tax advantage to distributing cash through repurchases in markets where capital gains are taxed at a higher rate than dividends.
Which of the following is most likely?
|
| Only Statement 1 is correct. |
|
| Both statements are correct. |
|
| Only Statement 2 is correct. |
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