The managers of Gripton plc are currently deciding between a dividend payment and a share...

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Finance

The managers of Gripton plc are currently deciding between a dividend payment and a share buyback as a means of distributing funds to shareholders.

Required: Which of the two do you think is more appropriate, assuming that the managers are concerned with:

(i) flexibility regarding the level of distribution

(ii)ensuring equity between different shareholders

(iii) signaling information clearly to the markets

Explain each of your answers

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