Under what circumstances would a firm engage in share repurchases rath

Under what circumstances would a firm engage in share repurchases rather than increasing dividends?

a. If the firm has excess free cash flow that management expects will continue indefinitely.
b. If the firm has excess free cash flow that management expects will be only temporary.
c. If shareholders are in a lower tax bracket for dividends than for realized capital gains.

 

 

ANSWER

B

Expert paper writers are just a few clicks away

Place an order in 3 easy steps. Takes less than 5 mins.

Calculate the price of your order

You will get a personal manager and a discount.
We'll send you the first draft for approval by at
Total price:
$0.00