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Consider the following: Truman Inc. and Carolina Inc. are both very similar firms, operating in the same industry. Truman has been using historically cash dividends

Consider the following: Truman Inc. and Carolina Inc. are both very similar firms, operating in the same industry. Truman has been using historically cash dividends only as its payouts to shareholders, while Carolina has been using many ways to payout shareholders: cash dividends, stock repurchases, stock dividends and DRIPs. Name at least 5 possible advantages that flexible and diverse payout policies might provide to Carolina vs. Truman Ind.

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