1. Do investors generally prefer dividends or share repurchases? Support your answer.2. What are some considerations a company should take into account when establishing dividend policy?

A person or an individual or an investor invests in a company for two main reasons – income and…

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Do investors generally prefer dividends or share repurchases? Support your answer.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter15: Distributions To Shareholders: Dividends And Repurchases

Section: Chapter Questions

Problem 7MC

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1. Do investors generally prefer dividends or share repurchases? Support your answer.
2. What are some considerations a company should take into account when establishing dividend policy?

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