On March 2, 2015, Best Buy Co. announced that it planned torepurchase up to...

50.1K

Verified Solution

Question

Accounting

On March 2, 2015, Best Buy Co. announced that it planned torepurchase up to $1 billion of its common shares. The company alsoannounced on that day that an increase in its quarterly dividendfrom $0.19 to $0.23 per share, and a one-time special dividend of$0.51 per share. The special dividend resulted from a windfalllegal settlement related to the manufacture of liquid crystaldisplays it had sold.
Which method of returning capital to investors (repurchases,regular dividends, special dividends) do you think is viewed byshareholders most favorably, and why?

Answer & Explanation Solved by verified expert

4.1 Ratings (754 Votes)

Best B Co sold manufacture of liquid crystal displays has a huge some of money within the companyinvestors may have different views to utilise this money that holding it as surplus As keeping money wont either increse company value nor get into hands of shareholders Shareholders View on Repurchasedividend In consider divdend See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

In: AccountingOn March 2, 2015, Best Buy Co. announced that it planned torepurchase up to $1...On March 2, 2015, Best Buy Co. announced that it planned torepurchase up to $1 billion of its common shares. The company alsoannounced on that day that an increase in its quarterly dividendfrom $0.19 to $0.23 per share, and a one-time special dividend of$0.51 per share. The special dividend resulted from a windfalllegal settlement related to the manufacture of liquid crystaldisplays it had sold.Which method of returning capital to investors (repurchases,regular dividends, special dividends) do you think is viewed byshareholders most favorably, and why?