Why an announcement of a share repurchase is considered a positive signal?

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Fundamentals Of Corporate Finance

ISBN: 9780133507676

3rd Edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

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Question Posted: Oct 25, 2016 11:09 AM

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Given your answer to Problem 17, what effect would you expect an announcement of a share repurchase to have on the stock price? Why?
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Why an announcement of a share repurchase is considered a positive signal?

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Fundamentals Of Corporate Finance

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