Which of the following is more true of repurchase offers than of cash dividends?
A) There is no real expectation that the offer will be repeated on an annual basis.
B) Repurchase offers require less cash than cash dividends.
C) Repurchase offers are more appealing to retail investors seeking predictable income.
D) Repurchase offers convey a strong message that the company expect to have sustainably higher cash flows in the future.

Question

Quizplus · Accepted Answer

Repurchase offers, unlike cash dividends, do not typically create an expectation of recurrence on an annual basis. Cash dividends often come with the anticipation of regular, future payments, whereas repurchase offers are usually seen as one-time transactions or less regular events.

Which of the Following Is More True of Repurchase Offers