Which of the Following Is NOT a Method for a Firm

question 73

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:

Discretionary Policy

Discretionary policy involves government and central banking measures that are actively implemented to influence economic conditions, such as adjusting taxes or changing interest rates.

Active Monetary Policy

Active monetary policy involves deliberate actions by a central bank to influence the economy's monetary supply and interest rates, aiming to achieve specific macroeconomic objectives.

Passive Approach

A strategy characterized by minimal or no intervention, often used in investment or management contexts.

Expansionary Gap

A situation where actual output in an economy exceeds the potential output, typically leading to inflation.