Which of the following is more true of cash dividends than of repurchase offers?
A)The amount of cash to be returned to shareholders is flexible on a year to year basis.
B)External funds would be raised before reducing stock repurchase offers but not before cutting cash distributions.
C)Cash distribution decisions would take priority over investment decisions.
D)The stock price would be severely penalized if the cash distribution is reduced.

Question

Quizplus · Accepted Answer

The amount of cash to be returned to shareholders is flexible on a year to year basis for cash dividends, but not for repurchase offers.

Which of the Following Is More True of Cash Dividends