True or False 1. Companies prefer stock buybacks to dividends because stock buybacks are much more flexible.
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True or False
1. Companies prefer stock buybacks to dividends because stock buybacks are much more flexible. Hence, market reactions to stock buybacks are more positive than dividends.
2. As the economy recovers, the government gradually increases interest rates. This is good news for corporations because their valuations will be higher.
3. Agency problem arises when there are conflicts of interests among shareholders.
4. Growth firms tend to pay more dividends than mature firms do.
5. Merger and acquisitions come in waves. When the financing cost is low in the economy, more firms would like to make mergers and acquisitions.
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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