Management of the Veil Acts Company just announced that instead of a regular dividend this quarter, the

Question:

Management of the Veil Acts Company just announced that instead of a regular dividend this quarter, the company will repurchase shares using the same amount of cash that would have been paid in the suspended dividend. Should this be a positive or negative signal from the firm?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...

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