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I have stock in a company that is buying back common stock through the market. I have some questions about this strategy.
1. Aren't shares repurchased using retained earnings?
2. If after repurchasing the stock the stock price doesn't go up, haven't the remaining stockholders lost value? For example, lower market to book ratio??
3. How do I compare shareholder value from one year to the next when shares are repurchased?
4. Generally speaking, what reasons are there for repurchasing stocks and how do I evaluate if they are effective?
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