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Why would stock repurchases or splits be preferred to dividend payments? What are two reasons a business may accumulate cash versus paying dividends? Why would

  1. Why would stock repurchases or splits be preferred to dividend payments?
  2. What are two reasons a business may accumulate cash versus paying dividends?
  3. Why would creditors want covenants in loan agreements for a borrowing firm not to pay dividends and how would owners of the firm potentially benefit from this strategy?

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