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    Capital Structure and dividend policy

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    Which of the following is correct?

    a)If a company put in place a 2-for-1 stock split, its stock price should roughly double.
    b)Share repurchases are taxed less favorably than dividends; this explains why companies typically pay dividends and avoid share repurchases.
    c) Very often, a company's stock price will rise when it announces that it plans to commence a share repurchase program. Rarely will such an announcement lead to a stock price decline.
    d) Stock repurchases increase the number of outstanding shares.

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