A Stock Repurchase Program

A stock repurchase program:

A) requires all shareholders to sell a fraction of their shares.
B) is preferred over a high-dividend program only by tax-exempt shareholders.
C) decreases both the number of shares outstanding and the market price per share.
D) has no effect on a firm's financial statements.
E) is essentially the same as a cash dividend program provided there are no taxes or other costs.

Correct Answer:

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