What is the logic behind repurchase shares of common stock to distribute excess cash to the firms

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What is the logic behind repurchase shares of common stock to distribute excess cash to the firm’s owners?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
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Principles of managerial finance

ISBN: 978-0132479547

12th edition

Authors: Lawrence J Gitman, Chad J Zutter

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