A firm cannot buy back stock AND increase dividends at the same time.

Name: A firm cannot buy back stock AND increase dividends at the same time.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A firm can choose to allocate its cash towards either buying back stock or increasing dividends, or it can choose to do a combination of both. However, it may not be advisable to do both at the same time if the company does not have enough cash flow or reserves to sustain both actions.

A Firm Cannot Buy Back Stock AND Increase Dividends at the Same