A _____ Is an Alternative Method to Cash Dividends Which

question 38

Multiple Choice

A _____ is an alternative method to cash dividends which is used to pay out a firm's earnings to shareholders.

• A)merger
• B)tender offer
• C)payment-in-kind
• D)stock split
• E)share repurchase

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Definitions:

Capital Budgeting

The process of planning and managing a company's long-term investments in projects and assets to maximize value and ensure financial sustainability.

Capital Structure

The combination of long-term liabilities, targeted short-term borrowings, ordinary shares, and preferred shares that finance a corporation's daily functions and expansion.

Capital Structure

This term describes the mix of debt and equity that a company uses to finance its operations and growth.

Debt

An amount of money borrowed by one party from another, under the condition it will be paid back with interest, often used for investments, operations, or purchases.