Suppose that there are no taxes, transactions costs, or other market imperfections. Which of the following actions is most likely to make shareholders better off?
A) Increase dividends.
B) Reduce share repurchases.
C) Announce that dividends will not change for at least three years.
D) Eliminate negative-NPV projects.
Correct Answer:
Verified
Q1: Dividend policy changes are decided and announced
Q2: Generally, firms engage in stock repurchases during
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Q3: Which of the following dividends are never
Q5: Generally, investors interpret the announcement of a
Q6: According to financial executives' views on dividend
Q7: According to survey data, which is the
Q8: The following statements are true of dividend
Q9: Firms can pay out cash to their
Q10: Firms can repurchase shares in the following
Q11: Generally, investors view the announcement of an
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