Sunday, 20 November 2016

If you were the CEO of your organization and were faced with a cash-rich scenario, would you use the cash to issue dividends or buy back stock?

If you were the CEO of your organization and were faced with a cash-rich scenario, would you use the cash to issue dividends or buy back stock? What impact would your decision have on earnings per share? Justify and defend your choice with sound reasoning. Your answer should be in your own words.

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