Repurchases and special dividends are useful for making ________ and ________ distributions to shareholders.
A) small, frequent
B) small, infrequent
C) large, infrequent
D) large, frequent

Question

Quizplus · Accepted Answer

Repurchases and special dividends are often used for making large and infrequent distributions to shareholders, rather than small or frequent ones. Repurchases involve buying back shares of stock from shareholders, which can be a more tax-efficient way of distributing cash than paying a regular dividend. Special dividends are one-time payouts of cash to shareholders, typically when a company has excess cash on hand or wants to reward shareholders for exceptional performance. These distributions tend to be larger and less frequent than regular dividends.

Repurchases and Special Dividends Are Useful for Making ________ and ________

Repurchases and Special Dividends Are Useful for Making and