Question

Historical evidence shows that over the last few decades a larger proportion of firms have used...

Historical evidence shows that over the last few decades a larger proportion of firms have used ________ for payouts.

Select one:

A. stock splits

B. stock reverse splits

C. repurchases

D. dividends

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Homework Answers

Answer #1

Option C is correct. Repurchases.

Historical evidence shows that over the last few decades a larger proportion of firms have used Repuchase for payouts.

Historically, Repurcahse has been the best option to pay back to the shareholders because usually cos dont have any Investment Opportunity and to make the EPS grow, firms used to repurchase the shares.

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