A firm's payout policy outlines how that firm chooses between alternate uses of free cash flows.

Name: A firm's payout policy outlines how that firm chooses between alternate uses of free cash flows.
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A firm's payout policy refers to the way in which it distributes its free cash flows to shareholders, either through dividends or share repurchases, as opposed to investing in new projects or retaining earnings.

A Firm's Payout Policy Outlines How That Firm Chooses Between