If a company has excess cash it wishes to return to shareholders, it can do this by either distributing extra dividends or repurchasing stock.

Name: If a company has excess cash it wishes to return to shareholders, it can do this by either distributing extra dividends or repurchasing stock.
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Question

Quizplus · Accepted Answer

This is true. Companies can choose to distribute extra cash to shareholders either through additional dividend payments or by repurchasing their own shares on the stock market.

If a Company Has Excess Cash It Wishes to Return