Which of the following is NOT a method for a firm to payout excess cash to its shareholders?
A) issue new shares
B) issue new shares and pay a high dividend
C) pay a dividend with the excess cash
D) repurchase shares

Question

Quizplus · Accepted Answer

Issuing new shares would not be a method to payout excess cash to shareholders as it would dilute the ownership of existing shareholders. Repurchasing shares, paying a dividend with excess cash, or issuing new shares and paying a high dividend are all methods to distribute excess cash to shareholders.

Which of the Following Is NOT a Method for a Firm