A Firm Cannot Buy Back Stock AND Increase Dividends at the Same

question 49

True/False

A firm cannot buy back stock AND increase dividends at the same time.

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Definitions:

Shareholders

Individuals or entities that own shares in a corporation, giving them rights to dividends and a stake in the company's equity.

Majority Vote

A voting rule used in decision-making processes where more than half of the votes cast by eligible participants is required to make a decision or elect a candidate.

Two-Thirds Vote

A voting requirement where two-thirds of the members present must agree in order for a proposal or motion to pass.

Unanimous Vote

A unanimous vote occurs when all members of a decision-making body agree on a proposal or decision, indicating full support or approval.