Distributions to shareholders: Dividends and Repurchases
Not what you're looking for?
From the perspective of an executive of a corporation, cash dividends paid to shareholders are good or bad, or both - good and bad? How did you come to that conclusion?
Purchase this Solution
Solution Summary
Distribution to shareholders, dividends and repurchases.
Solution Preview
Cash dividend is the appropriation of the profits to the shareholders in form of cash. Dividend policy is an important decision for the organization as it determines the utilization of profits. A greater dividend payout ratio can lead to reduction in cash availability for reinvestment and the vice versa. An organization has to compare the returns earned from the future project with the returns of giving cash back to the shareholders. If the Project is having positive NPV and greater IRR than WACC then the firm can retain cash.
There are both pros and cons of paying ...
Purchase this Solution
Free BrainMass Quizzes
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.
Organizational Behavior (OB)
The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.
Transformational Leadership
This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.
Social Media: Pinterest
This quiz introduces basic concepts of Pinterest social media