Please read the question below and then provide your response in your reply. Your response must meet the following criteria. Quality of Post: Fully answers the question(s); Post is substantive and shows a deep level of understanding of the concepts; Post synthesizes, applies, and/or integrates concepts effectively.

Connections to Content: Post includes obvious and direct connections to competency content; May include direct/indirect quotes and references the content from the competency.

Originality: Post is original and demonstrates an independent thought process that is creative and individualized. Post adds value by raising novel points or providing new perspectives.

Writing Mechanics: Post is concise and clearly written in an academic tone; Sentences are complete; spelling, grammar and punctuation are correct. Question: After watching the following two videos, how do you think will the market generally interpret a dividend cut combined with a stock repurchase? You must demonstrate (1) why firms buy back their own stock; and (2) better understand the primary drivers behind the dividend decision and how the thought processes concerning dividend decisions are so similar to the factors that affect the optimal capital structure. Why Firms Buy Back Their Own Stock https://www.youtube.com/watch?v=NTOpui17Ku4

The Dividend Decision https://www.youtube.com/watch?v=UESERs1PhvY

Your answer must describe how a good combination of dividend payments and share buybacks may greatly boost shareholder returns. A reduced dividend payout would translate to reduced revenue received. Stock repurchase means that the company is focused on the future returns of its shareholders. With the idea of "double taxation" on dividends, the market would translate the move as consideration for its shareholders. When the two are combined, the market can translate it as goodwill from the company and the company will attract more interested shareholders and the value of its shares will go up in the stock market.