Question: A company is considering distributing its $300 in cash either in the form of a dividend or by buying back its stock. If it distributes

A company is considering distributing its $300 in cash either in the form of a dividend or by buying back its stock. If it distributes the $300 as a dividend, the cash will go to the current shareholders. If the company buys back its stock, it will pay $6/share.

Using the drop-down choices, fill-in the six blanks in the table below.

Issue dividends Buyback shares

A [ Select ] ["300", "900", "450", "600"] a [ Select ] ["900", "300", "600", "450"]

B [ Select ] ["50", "150", "75", "100"] b [ Select ] ["150", "100", "75", "50"]

C [ Select ] ["4", "5", "6", "4.50"] c [ Select ] ["4", "6", "4.50", "5"]

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!