The managers of Gripton plc are currently deciding between a dividend payment and a share buyback as

Question:

The managers of Gripton plc are currently deciding between a dividend payment and a share buyback as a means of distributing funds to shareholders.

Required:

Which of the two do you think is more appropriate, assuming that the managers are concerned with:

(i) Flexibility regarding the level of distribution

(ii) Ensuring equity between different shareholders

(iii) Signalling information clearly to the markets?

Explain each of your answers.

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Financial Management For Decision Makers

ISBN: 9781292311432

9th Edition

Authors: Peter Atrill

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Question Posted: Jan 04, 2024 06:50 AM

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The managers of Gripton plc are currently deciding between a dividend payment and a share buyback as

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Gripton plc i A share buyback is likely to offer greater flexibility Dividends are normally distribu...View the full answer

Financial Management For Decision Makers

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