A ________ is an alternative method to cash dividends that is used to distribute a firm's earnings to shareholders. A. merger B. reverse stock split C. payment-in-kind D. share repurchase E. stock split

Respuesta :

Answer:

The correct answer is letter "D": share repurchase.

Explanation:

A stock buyback or repurchase happens when a business purchases its own market shares and therefore the number of outstanding shares decreases. Companies can do so in one of two ways: the company can either purchase shares at current market prices or offer existing shareholders a fixed-price offer.

The primary advantage of a buyback is the price appreciation investors typically see after the deal.

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