Green Mountain Producers Inc. is an oil drilling company that has some free cash flow that is
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Green Mountain Producers Inc. is an oil drilling company that has some free cash flow that is not expected to be used for its growth or investment projects. The company plans to distribute the free cash flow to its shareholders but is still deciding whether the distribution should be made via a stock repurchase or the payment of cash dividends.
Which method of cash distribution carries more informational content when its announcement is made: the cash dividends or the stock repurchase?
Related Book For
Fundamentals Of Corporate Finance
ISBN: 9780135811603
5th Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
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