If you are a company that has a very large amount of cash in its treasury and the IRS is concerned that you have been hoarding cash to prevent your shareholders from having to pay dividend taxes,which of the following would be your most likely method of getting cash into your shareholders hands?

Question

Quizplus · Accepted Answer

The most direct way to get cash into shareholders' hands is to pay a cash dividend. Repurchasing shares or debt does not result in a direct transfer of cash to shareholders.

If You Are a Company That Has a Very Large