Question $7$

The shareholders of your firm anticipate receiving a regular dividend that is consistent with past dividend policies. What benefit occurs to shareholders if the firm repurchases shares with the same total quantity of money that would have been spent on dividends?

There is no benefit as shareholders will not be receiving any cash.

It is cheaper for shareholders to sell existing shares for cash than it costs to reinvest cash dividends into existing shares.

Shareholders can postpone or reduce taxes $($assuming a lower capital gain rate$).$

The current shareholders benefit because there are a greater number shareholders than if the firm pays a cash dividend.