A Dividend Method That Many Tech Companies Favor in Order

question 24

Multiple Choice

A dividend method that many tech companies favor in order to have more tax efficiency, boost earnings per share and signal that the company has more productive uses for its cash than paying dividends is ____.

• A) stock splits
• B) reverse stock splits
• C) dividend payout
• D) stock buybacks

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Definitions:

Ordering Costs

Expenses incurred in placing and processing orders for goods or services, including costs associated with ordering, receiving, and inspecting items.

Service Level

A measure of the quality of service provided by a vendor or organization, often outlined in service-level agreements specifying performance and availability standards.

ABC Analysis

A method of classifying inventory items into three categories (A, B, and C) based on their value to the company, with A being the most valuable and C being the least.

Procurement Cards

Payment cards issued to employees to make purchases on behalf of their organization, streamlining the purchasing and accounting processes.