For a company with unpredictable investment needs and opportunities,the best way to distribute cash to shareholders would be

Question

Quizplus · Accepted Answer

Repurchasing company shares allows for flexibility in distributing cash to shareholders without committing to a regular dividend payment. This also enables the company to invest in growth opportunities as they arise. A residual dividend policy would require the company to pay out any excess cash as dividends, which may not be feasible if there are unpredictable investment needs. Issuing preference shares may limit the flexibility of cash distribution and paying dividends on an irregular basis may not provide shareholders with a consistent return on their investment.

For a Company with Unpredictable Investment Needs and Opportunities,the Best