Problem:
If you ignore taxes and transaction costs, a stock repurchase will?
I. reduce the total assets of a firm.
II. increase the earnings per share.
III. reduce the PE ratio more than an equivalent stock dividend.
IV. reduce the total equity of a firm.
A. I and III only
B. II and IV only
C. I, II, and IV only
D. I, III, and IV only
E. I, II, III, and IV
Summary of question:
The question belongs to Finance and it discusses about stock repurchase that can occur under certain circumstances, if we ignore taxes and transaction costs.