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Companies should issue (repurchase) shares when their stock price is high (low).Group of answer choicesTrueFalse

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Companies should issue (repurchase) shares when their stock price is high (low).Group of answer choicesTrueFalse

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Solution

True. Companies should issue shares when their stock price is high because they can raise more capital that way. Conversely, they should repurchase shares when their stock price is low to reduce the number of outstanding shares and increase the value of remaining shares.

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