Management of the Veil Acts Company just announced that instead of a regular dividend this quarter, the

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Management of the Veil Acts Company just announced that instead of a regular dividend this quarter, the company will repurchase shares using the same amount of cash that would have been paid in the suspended dividend. Should this be a positive or negative signal from the firm?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Fundamentals of Corporate Finance

ISBN: 978-1119371403

4th edition

Authors: Robert Parrino, David S. Kidwell, Thomas Bates

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