what are some cited references for this essay: two ways a firm can return cash to its
Question:
what are some cited references for this essay: two ways a firm can return cash to its shareholders are through dividends and stock repurchases. 1. Dividends: This is a payment made by a corporation to its shareholders, usually in the form of cash. Dividends are typically issued as a percentage of the company's profits. The amount each shareholder receives is proportional to their percentage of ownership in the company. For example, if a company declares a $1 dividend and a shareholder owns 100 shares, they would receive $100. 2. Stock Repurchases: Also known as a share buyback, this is when a company buys back its shares from the marketplace. The effect of a share buyback is to reduce the number of outstanding shares on the market, which increases the proportion of shares a company owns. When a company buys back shares, it usually pays shareholders the market value per share. This provides shareholders with a cash return, similar to a dividend. For example, if a company buys back 1,000 shares at $10 each, it would return $10,000 to shareholders. Both methods are ways for a company to return cash to its shareholders, either by distributing profits (dividends) or by reducing
South Western Federal Taxation 2016 Corporations Partnerships Estates And Trusts
ISBN: 9781305399884
39th Edition
Authors: James Boyd, William Hoffman, Raabe, David Maloney, Young