15: Analysis of Dividends & Share Repurchases Flashcards
1
Q
Share buyback:
(Direct Negotiation) Greenmail is an effort to avoid a takeover situation by:
A
offering a substantial premium above the market price to the shareholder
1
Q
Payout policy is different from Dividend policy because:
A
it is broader
includes other means: special dividends, stock repurchases,etc.
2
Q
Share buyback
In a dutch auction, a price range for a given number of shares is made through a:
A
tender offer
3
Q
Share buyback
Open market purchase, the company will accumulate shares by: & when:
A
by repurchasing its shares at the market price, as they become available
& when: the company believes that conditions for a purchase are favorable
