Valuation with share repurchases and personal taxes

Abstract We derive a consistent valuation approach that integrates the interdependent effects of cash dividends, share repurchases and active debt management while considering personal taxes. The is based on assumption predetermined proportion flow to equity used for instead dividends. Additionally, we examine cost by deriving appropriate adjustment formulae. Furthermore, run simulations investigate differences caused distribution excess via dividends or repurchases. results show have significant positive effect market value.