Fundamentals of Corporate Finance
Fundamentals of Corporate Finance
11th Edition
ISBN: 9780077861704
Author: Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Bradford D Jordan Professor
Publisher: McGraw-Hill Education
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Chapter 17, Problem 10CRCT
Summary Introduction

To discuss: The taxation effects on stock repurchase compared to dividend payments.

Introduction:

Stock repurchase is also termed as buyback of shares, where the company repurchases its own shares, which are outstanding. The extra cash can be used in paying the debts; the cash dividend is the distribution of company’s earnings to the shareholders.

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Fundamentals of Corporate Finance

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Dividend explained; Author: The Finance Storyteller;https://www.youtube.com/watch?v=Wy7R-Gqfb6c;License: Standard Youtube License