Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / From an investor standpoint, do you believe dividends or repurchases of stock (treasury stock) is the best way to create economic value for the shareholder?

From an investor standpoint, do you believe dividends or repurchases of stock (treasury stock) is the best way to create economic value for the shareholder?

Finance

  • From an investor standpoint, do you believe dividends or repurchases of stock (treasury stock) is the best way to create economic value for the shareholder?

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Answer Preview

It is a way to create economic value especially when the stock price js deeply undervalued. But always using repurchase to create value may not be a good idea since the company is using its cash to buy stock which could be used to reinvest in the business. Thus repurchase to an extent is good way to create value. One of recent example is TCS will bought up its shares at 20% premium.