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Homework answers / question archive / From an investor standpoint, do you believe dividends or repurchases of stock (treasury stock) is the best way to create economic value for the shareholder?
It is a way to create economic value especially when the stock price js deeply undervalued. But always using repurchase to create value may not be a good idea since the company is using its cash to buy stock which could be used to reinvest in the business. Thus repurchase to an extent is good way to create value. One of recent example is TCS will bought up its shares at 20% premium.