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Question
P&G announced that it would be buying back $18 to $22 billion of its stock over the eighteen months following closing. Much of the cash required to repurchase these shares requires significant new borrowing by the new companies. Explain what P&Gs objective may have been trying to achieve in deciding to repurchase stock? Explain how the incremental borrowing help or hurt P&G achieve their objectives?
Answer
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d. It is commonly done
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