Repurchases of shares may be viewed as an alternative to paying cash dividends.

Name: Repurchases of shares may be viewed as an alternative to paying cash dividends.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Repurchases of shares can be seen as an alternative to paying cash dividends because both methods return capital to shareholders. Repurchasing shares reduces the number of shares outstanding, potentially increasing the value of remaining shares, similar to how dividends provide a direct cash benefit to shareholders.

Repurchases of Shares May Be Viewed as an Alternative to Paying