When a firm pays dividend to shareholders

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When a firm pays a dividend to shareholders, 'how' does the firm go about determining both 'if' a dividend payment is to be made, and 'how much' this dividend will be. Essentially, highlight the processes/criteria a firm would likely consider in/with such a decision.  

Secondly, consider the repurchase of its own shares by the firm.

'Where' does the money (in most cases) come from in order to complete a repurchase of shares, and, do you think/believe that the repurchase of shares is a good/bad idea (and, of course, 'why')?

Reference no: EM131583535

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