Which of the Following Is NOT a Method for a Firm

question 2

Multiple Choice

Which of the following is NOT a method for a firm to payout excess cash to its shareholders?

• A)Issue new shares
• B)Issue new shares and pay a high dividend
• C)Pay a dividend with the excess cash
• D)Repurchase shares

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Definitions:

Perceived Benefits

The advantages or positive outcomes that consumers believe they will gain from purchasing and using a product or service.

Decreasing Cost

A situation in which a company experiences a reduction in the cost per unit as the level of production increases, often due to economies of scale.

Value Pricing

A pricing strategy where the price is set based on the perceived or estimated value of a product or service to the customer rather than on the cost of production or market prices.

Perceived Value

The customer's evaluation of the worth of a product or service based on its ability to meet their needs and expectations, regardless of the actual tangible value.