Question: Could you please explain if this is a correct statement and the analogy behind it: [f a company repurchases stock instead of paying a dividend,

Could you please explain if this is a correct statement and

Could you please explain if this is a correct statement and the analogy behind it:

the analogy behind it: [f a company repurchases stock instead of paying

[f a company repurchases stock instead of paying a dividend, the number of shares falls and earnings per share rise. Thus stock repurchase must be always preferred to paying dividends

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