the market price is equal to the stock’s intrinsic value
there are no psychological reactions by the stock market or signaling effects
the market has anticipated the effects on stock value of a share repurchase program if such a program is to be implemented.
KeywordsEthyl Income Expense Hedging
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- Ikenbury, D., J. Lakonishok, and T. Vermaelen, “Market Underreacting to Open Market Share Repurchases,” Journal of Financial Economics, V39, N2–3 (October, 199) pp 181–208.Google Scholar