According to (Weston, 2001), Share repurchases are cash offers for outstanding shares of common stock and changes the book capital structure of the starchy, by simplification the amount of common stock.
According to (Simkovic, 2007) form repurchases, like dividends, are used by publicly traded corporations to distribute cash to shareholders. Most stock repurchases are Open Market Repurchases (OMRs), repurchases in which a corporation uses a broker to purchase its own stock in the public market over an extended period.
According to (Irwin, 2000), there are types of distribution to shareholders :
Cash Dividends
Stock dividends and Stock Splits
regular dividends
stock splits
extra dividends
small stocks
special dividends
wide-ranging stocks dividends
liquidating dividends
Jan. 15- Declaration ensure board of directors declares payment of dividends .
Jan. 28 Ex dividend get a line- a share of stock goes ex dividend on the date the seller is entitled to keep the dividend.
Jan. 30 Record Date declared dividends are payable to the shareholders of record on a specific date.
Feb. 16 Payment date dividend checks are mail-clad to the shareholders of record.
The effects of a cash dividend vs. share repurchase
1. Assumes no taxes, focal point or other market imperfections.
2. Consider a firm with $50,000.00 shares outstanding and the following balance sheet.
Cash Dividends and the real world
economic crisis payout is better if one consider
High Payout is better...If you want to get a full essay, order it on our website: Orderessay
If you want to get a full essay, wisit our page: write my essay .
No comments:
Post a Comment