Question
Why might a company choose to pay a cash dividend rather than use the funds to repurchase shares of stock? A) To maintain future financial
Why might a company choose to pay a cash dividend rather than use the funds to repurchase shares of stock?
A) To maintain future financial flexibility
B)To offset the dilution that comes from stock issuance in the form of compensation to managers
C)To signal that management believes the current stock price is too low
D) To signal that the growth in future earnings prospects have improved
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Get StartedRecommended Textbook for
Principles of Finance
Authors: Scott Besley, Eugene F. Brigham
6th edition
9781305178045, 1285429648, 1305178041, 978-1285429649
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