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A company, like most companies, has retained earnings in the bank. They can keep it, pay it out as a dividend, or use it to
A company, like most companies, has retained earnings in the bank. They can keep it, pay it out as a dividend, or use it to repurchase equity. Assume no market "friction" (taxes, signals, etc). Rank, from most advantageous to least advantageous, the effect that these options have on the shareholders' wealth A) All the options are the same B) Keep, Dividend, Repurchase C) Repurchase, Dividend, Keep D) Keep, Repurchase, Dividend E) Dividend, Repurchase, Keep
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