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Firms choose to cut or eliminate their dividends

Assignment Help Financial Management
Reference no: EM132549478

This discussion question has two parts. Respond to both parts to receive full credit for this assignment.

Part 1: Why do firms choose to make large increases in their dividends or start a stock repurchase program? Why would they choose one of these payout methods over another?

Part 2: Why do firms choose to cut or eliminate their dividends? What usually happens to the stock price of a company that does this?

Include some news or advice from an article that is less than a year old that is applicable to this discussion.

The ProQuest database at the Saint Leo University Library website can be a useful tool for completing this assignment. Click here for instructions on accessing ProQuest.

Reference no: EM132549478

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