Question
A company is considering distributing its $300 in cash either in the form of a dividend or by buying back its stock. If it distributes
A company is considering distributing its $300 in cash either in the form of a dividend or by buying back its stock. If it distributes the $300 as a dividend, the cash will go to the current shareholders. If the company buys back its stock, it will pay $6/share.
Using the drop-down choices, fill-in the six blanks in the table below.
Issue dividends Buyback shares
A [ Select ] ["300", "900", "450", "600"] a [ Select ] ["900", "300", "600", "450"]
B [ Select ] ["50", "150", "75", "100"] b [ Select ] ["150", "100", "75", "50"]
C [ Select ] ["4", "5", "6", "4.50"] c [ Select ] ["4", "6", "4.50", "5"]
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