CF
If you are the board director, and there is an excess of cash in the company, and there are no positive NPV investments, would you rather pay out dividend or buy back shares?
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Lesson duration is: 55 minItems in this lesson
If you are the board director, and there is an excess of cash in the company, and there are no positive NPV investments, would you rather pay out dividend or buy back shares?
Slide 1 - Open question
The theory says that there are four ways to buy back shares (open market, tender offer, auction and target offer). Which one is the most effective in your opinion and why?
Slide 2 - Open question
The effect of buy backs has some advantages, but also some disadvantages. Back in the 1980s buybacks were firstly legalized. Do you think legalization of repurchase of shares was a good idea, why (not)?
Slide 3 - Open question
Can share buybacks be seen as a signal of a company's confidence in its own future performance? How do investors typically interpret share buybacks in this context?
Slide 4 - Open question
To verify if all of you did pay attention: what is the size of the countries first group and the size of the control group?
