Assume that a company is based in a country that has no taxes on dividends or capital gains. The company is considering either paying a special dividend or repurchasing its own shares. Shareholders of the company would have:
A. greater wealth if the company repurchased its shares.
B. greater wealth if the company paid a special cash dividend.
C. the same wealth under either a cash dividend or share repurchase program.
Ans: C. the same wealth under either a cash dividend or share repurchase program.
Business
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A) Break-even analysis B) SWOT analysis C) Marginal analysis D) Competitive analysis E) Supply-demand analysis
Business
An increase in the level of trade among nations that results from regional economic integration is called ________
A) trade diversion B) mercantilism C) trade creation D) economic nationalism
Business