Capital Structure and dividend policy
Not what you're looking for?
Which of the following is correct?
a)If a company put in place a 2-for-1 stock split, its stock price should roughly double.
b)Share repurchases are taxed less favorably than dividends; this explains why companies typically pay dividends and avoid share repurchases.
c) Very often, a company's stock price will rise when it announces that it plans to commence a share repurchase program. Rarely will such an announcement lead to a stock price decline.
d) Stock repurchases increase the number of outstanding shares.
Purchase this Solution
Solution Summary
The solution is very easy to understand and concise. It is an excellent response for students who want to understand the concepts and then use the same concepts to solve similar problems in the future. Overall, an excellent response. The solution provides the necessary steps which are easy to follow.
Purchase this Solution
Free BrainMass Quizzes
Situational Leadership
This quiz will help you better understand Situational Leadership and its theories.
Introduction to Finance
This quiz test introductory finance topics.
Learning Lean
This quiz will help you understand the basic concepts of Lean.
Lean your Process
This quiz will help you understand the basic concepts of Lean.
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.