Question: In a well functioning and fully informed capital market, which of the following is NOT correct? A. Paying a dividend reduces the number of shares

In a well functioning and fully informed capital market, which of the following is NOT correct?

A.

Paying a dividend reduces the number of shares outstanding.
B.

Repurchasing stock at the market price does not affect the value per share.
C.

Repurchasing stock at the market price reduces cash and the number of shares.
D.

Paying a dividend reduces cash and the value per share.
E.

All of the answers are true.

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