For a large public company, paying cash dividends to shareholders will ____; repurchasing shares from shareholders is likely to _____. Group of answer choices a. reduce the company’s share price because it decreases the company’s total asset value; reduce the company’s share price because it decreases the company’s asset value b. reduce the company’s share price because it decreases the company’s asset value; raise the company’s share price because it signals good news to the stock market c. reduce the company’s share price because it decreases the company’s asset value; raise the company’s share price because it reduces the number of shares outstanding d. raise the company’s share price because it sends good signal to the stock market; raise the company’s share price because it reduces the outstanding shares number

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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For a large public company, paying cash dividends to shareholders will ____; repurchasing shares from shareholders is likely to _____.

Group of answer choices
a. reduce the company’s share price because it decreases the company’s total asset value; reduce the company’s share price because it decreases the company’s asset value
b. reduce the company’s share price because it decreases the company’s asset value; raise the company’s share price because it signals good news to the stock market
c. reduce the company’s share price because it decreases the company’s asset value; raise the company’s share price because it reduces the number of shares outstanding
d. raise the company’s share price because it sends good signal to the stock market; raise the company’s share price because it reduces the outstanding shares number
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