(14%) In an economic recession or when a firm encounters difficulties in business operations, a firm experiences a decline in earnings

I will be expecting the Dividend policy and the repurchase policy of the company to change because the company will be trying to save itself from the risk associated with survival during the period of recession because it will be trying to eliminate the risk associated with the recession and it will be trying to secure itself from any kind of credit squeeze and liquidaty with so it will be trying to provide itself with optimum liquidity and it will be trying to enhance the higher cash availability on the hands and it will be slowing of the dividend payout and it will also slow the repurchase program so it will try to retain high amount of cash in hand in it will be trying to face the turbulent time with higher liquidity of the hands.

So, it can be said that the overall dividend payment and repurchase of the company is likely to be slowed down because the company will be more focused towards keeping higher amount of cash in hands.