Stock repurchases is better than an extra cash dividend. Introduction: A company buys its own stock for an exchange of cash is termed as stock repurchase. The company buys back shares whereas cash dividend is the distribution of a portion of company’s earnings to the shareholders.

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Answer 1

Question

Chapter 17.6, Problem 17.6ACQ

Summary Introduction

To discuss: Stock repurchases is better than an extra cash dividend.

Introduction:

A company buys its own stock for an exchange of cash is termed as stock repurchase. The company buys back shares whereas cash dividend is the distribution of a portion of company’s earnings to the shareholders.

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Would a typical common stock provide cash flows like an annuity or more like an uneven cash flow stream?

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How would you argue for a significant increase in both dividends and repurchases instead of using the available cash to make investments, i.e. M&A?

Answer 2

Question

Chapter 17.6, Problem 17.6ACQ

Summary Introduction

To discuss: Stock repurchases is better than an extra cash dividend.

Introduction:

A company buys its own stock for an exchange of cash is termed as stock repurchase. The company buys back shares whereas cash dividend is the distribution of a portion of company’s earnings to the shareholders.

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Answer 3

Question

Chapter 17.6, Problem 17.6ACQ

Summary Introduction

To discuss: Stock repurchases is better than an extra cash dividend.

Introduction:

A company buys its own stock for an exchange of cash is termed as stock repurchase. The company buys back shares whereas cash dividend is the distribution of a portion of company’s earnings to the shareholders.

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Answer 4

Question

Chapter 17.6, Problem 17.6ACQ

Summary Introduction

To discuss: Stock repurchases is better than an extra cash dividend.

Introduction:

A company buys its own stock for an exchange of cash is termed as stock repurchase. The company buys back shares whereas cash dividend is the distribution of a portion of company’s earnings to the shareholders.

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Answer 5

Chapter 17.6, Problem 17.6ACQ

Summary Introduction

To discuss: Stock repurchases is better than an extra cash dividend.

Introduction:

A company buys its own stock for an exchange of cash is termed as stock repurchase. The company buys back shares whereas cash dividend is the distribution of a portion of company’s earnings to the shareholders.

Answer 6

Chapter 17.6, Problem 17.6ACQ

Summary Introduction

To discuss: Stock repurchases is better than an extra cash dividend.

Introduction:

A company buys its own stock for an exchange of cash is termed as stock repurchase. The company buys back shares whereas cash dividend is the distribution of a portion of company’s earnings to the shareholders.

Answer 7

Chapter 17.6, Problem 17.6ACQ

Summary Introduction

To discuss: Stock repurchases is better than an extra cash dividend.

Introduction:

A company buys its own stock for an exchange of cash is termed as stock repurchase. The company buys back shares whereas cash dividend is the distribution of a portion of company’s earnings to the shareholders.

Answer 8

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Answer 11

Ch. 17.1 - Prob. 17.1ACQ Ch. 17.1 - What are the mechanics of the cash dividend...Ch. 17.1 - How should the price of a stock change when it...Ch. 17.2 - How can an investor create a homemade dividend?Ch. 17.2 - Prob. 17.2BCQ Ch. 17.3 - Prob. 17.3ACQ Ch. 17.3 - Why do flotation costs favor a low payout?Ch. 17.4 - Why might some individual investors favor a high...Ch. 17.4 - Prob. 17.4BCQ Ch. 17.5 - How does the market react to unexpected dividend...

Stock repurchases is better than an extra cash dividend. Introduction: A company buys its own stock for an exchange of cash is termed as stock repurchase. The company buys back shares whereas cash dividend is the distribution of a portion of company’s earnings to the shareholders.

Solution Summary: The author explains that stock repurchases are better than an extra cash dividend, since they can be reinvested for the sake of shareholders without tax implication.

Videos

To discuss: Stock repurchases is better than an extra cash dividend.

Introduction:

A company buys its own stock for an exchange of cash is termed as stock repurchase. The company buys back shares whereas cash dividend is the distribution of a portion of company’s earnings to the shareholders.

Want to see the full answer?

Chapter 17 Solutions

Stock repurchases is better than an extra cash dividend. Introduction: A company buys its own stock for an exchange of cash is termed as stock repurchase. The company buys back shares whereas cash dividend is the distribution of a portion of company’s earnings to the shareholders.

Solution Summary: The author explains that stock repurchases are better than an extra cash dividend, since they can be reinvested for the sake of shareholders without tax implication.

Videos

To discuss: Stock repurchases is better than an extra cash dividend. Introduction: A company buys its own stock for an exchange of cash is termed as stock repurchase. The company buys back shares whereas cash dividend is the distribution of a portion of company’s earnings to the shareholders.

Want to see the full answer?

Chapter 17 Solutions

To discuss: Stock repurchases is better than an extra cash dividend.

Introduction:

A company buys its own stock for an exchange of cash is termed as stock repurchase. The company buys back shares whereas cash dividend is the distribution of a portion of company’s earnings to the shareholders.