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Impact of Repurchases on the Dividend Discount Model

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Which of the following statements is/are true about the impact of repurchases on the dividend discount model? Select ALL that apply.

A

Repurchases have no impact on the dividend discount model.

B

Repurchases act like dividends in the dividend discount model.

C

When repurchases are involved, it becomes easier to value the entity's total free cash flow instead of only the dividends.

D

Repurchases make it easier to value the stock on a per share basis because there are fewer shares over which to calculate a return.