Which of the following is truer of cash dividends than of buyback 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 share buyback offers but not before cutting cash distributions.
C) Cash distribution decisions would take priority over investment decisions.
D) The share price would be severely penalised if the cash distribution is reduced.
Correct Answer:
Verified
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