Question: When is it appropriate for a firm to repurchase its own common stock? When would it be considered a poor decision?

When is it appropriate for a firm to repurchase its own common stock? When would it be considered a poor decision?

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Purchasing treasury stock for investment purposes would be appropriate for firms that believe the market has undervalued their stock price Some firms also purchase their own common stock in order to reissue it for employee stock programs This is appropriate for preventing the dilution of the stock price for current investors It would be a ... View full answer

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