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A _____ is an alternative method to cash dividends that is used to distribute a firm's earnings to shareholders.

User Rashim
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1 Answer

7 votes

Answer:

"Share Repurchase " would be the correct one.

Step-by-step explanation:

  • Application whereby a company is buying back one's free-market stock. Typically it occurs whenever the shares are oversold or overvalued.
  • Even though repurchase decreases the number of common shares and therefore also raises the return on equity, it helps in enhancing the equity value of the investment investors and shareholders kept.
User Vek
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