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Which of the following is NOT a form of payout (i.e. returning profits) to shareholders?...

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Question

Finance

Which of the following is NOT a form of payout (i.e. returning profits) to shareholders?

a.

Stock dividends

b.

Share repurchases

c.

Special benefits for shareholders

d.

Cash dividends

e.

Right issues

All but one of the following statements are true concerning the benefits of share buybacks:

a.

Buybacks make sense when the management feel their shares are under-priced.

b.

Buybacks can offset the earning dilution effect caused when employee options result in issuing additional new shares.

c.

As fewer shares remaining to share the same earnings, a buyback should increase the firm's earnings per share.

d.

Buybacks offer firms an essential source of extra capital, particularly if significant acquisitions are under consideration.

e.

Buybacks are an alternative to increasing dividends without changing dividend expectations of shareholders.

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