Question

In: Finance

One possible reason that shareholders often insist on higher dividends is Select one: a. they don't...

One possible reason that shareholders often insist on higher dividends is

Select one:

a. they don't want companies to have a lot of excess cash if they can’t find good new projects to invest in.

b. Investors prefer to receive cash back rather than have the company invest more cash in new projects.

c. the dividend tax is always low.

d. the capital gains tax is always higher than dividend tax.

Generally, firms engage in stock repurchases during

Select one:

a. recessions due to low stock prices and times when competitors’ stock prices are dropping.

b. Economic upturns as strong profits results in firms starting to have excess cash

c. times when competitor's stock prices are dropping.

d. recessions due to low stock prices.

Solutions

Expert Solution

the question is related to the reason that shareholders often insist on higher dividends and when firms engaged in stocks repurchases.


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