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When a corporation uses excess cash to buy back its own shares of stock, the result is:

1- an increase in the overall value of the corporation.

2- an increase in dividends paid and an increase in share price

3- a decrease in share price and an increase in dividends paid.

4- a reduction of dividends paid by the corporation and a reduction in the number of shares outstanding.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M941852

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