An Alternative to a Cash Dividend Payment by the fiRm

question 373

Multiple Choice

An alternative to a cash dividend payment by the firm from its earnings to the shareholders, achieved by the firm buying some of its outstanding stock on the open market, is a:

• A) Merger.
• B) Tender offer.
• C) Payment-in-kind.
• D) Stock split.
• E) Share repurchase.

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Definitions:

Defining Characteristics

The unique attributes or qualities that clearly distinguish a person, object, concept, or phenomenon from others within its category or domain.

Small Businesses

Independently owned and operated companies with limited revenue and number of employees, serving local markets.

Failure Rates

The proportion or frequency at which a process, system, or product fails to perform its intended function.