Compared to Raising Regular Cash Dividends, Initiating On-Market Share Buy-Backs

question 53

True/False

Compared to raising regular cash dividends, initiating on-market share buy-backs are generally not as strong a positive signal to investors because the buy-back can easily be cancelled or scaled back before it is completed.

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Definitions:

Potential Energy

The energy possessed by an object due to its position, condition, or structure, such as a rock at the top of a hill or water held behind a dam.

Energy Quality

Energy Quality refers to the ability of a form of energy to perform work; higher quality energies are more easily used to perform work effectively.

Electricity

The set of physical phenomena associated with the presence and motion of electric charge, used as a form of energy.

Ionizing Radiation

Radiation with enough energy to remove tightly bound electrons from atoms, thus creating ions, and can lead to chemical changes and damage biological tissues.