identify three reasons why a firm might repurchase its own stock

Question

Question

identify three reasons why a firm might repurchase its own stock

Answer 1

Answer #1

Reasons for firm repurchase its own stock:

1. Repurchasing outstanding shares can help a business reduce its cost of capital,

2.They will essentially reduce the assets on their balance sheets and increase their return on assets

3.ownership consolidation, undervaluation, and boosting its key financial ratios

Answer 2

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