Why do firms choose to cut or eliminate the dividends

Reference no: EM132028150

Question: 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?

Reference no: EM132028150

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