long term so should we take %change in share outstanding
long term so should we take %change in share outstanding?
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Logically no. Because, Grinold Kroner Model assumes the % change in Share Repurchase as a Finite component. They have defined Long Term as ” Perpetual” in the text. Perpetually repurchasing shares would lead to all shares outstanding eliminated, so it’s an implausible assumption. The question is indeed inconsistent with the answer. Perhaps a typo, with the word “Long Term”. Exam questions are expected to be more transparent.