Yerba Industries$$Does this change benefit the$$ shareholder? Explain.$($Select the best choice$$ below.$)$

A$.$

It does benefit shareholders because their cash flows have gone up and everything else is unchanged.

B$.$

You cannot tell. It depends on shareholders risk preferences. Cash flows are$$ higher, but so is$$ risk, some shareholders will be better$$ off, some will be worse off.

C$.$

It does not benefit shareholders because the risk of holding equity has increased.

D$.$

It does not benefit shareholders because if you take into account the shares they lost to the$$ repurchase, their cash flows are actually the same.