Assume that a company is based in a country that has no taxes on dividends or capital

Question:

Assume that a company is based in a country that has no taxes on dividends or capital gains. The company is considering either paying a special dividend or repurchasing its own shares. Shareholders of the company would have:

A. greater wealth if the company repurchased its shares.

B. greater wealth if the company paid a special cash dividend.

C. the same wealth under either a cash dividend or share repurchase program.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Corporate Finance A Practical Approach

ISBN: 9781118217290

2nd Edition

Authors: Michelle R Clayman, Martin S Fridson, George H Troughton, Matthew Scanlan

Question Posted: