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hram777 [196]
2 years ago
8

Many executives own shares in the companies they manage and are also in high tax brackets. When faced with the choice between de

claring dividends and repurchasing shares, managers may opt to repurchase shares as it is not a taxable event for them unless they sell their shares and with fewer shares outstanding, the stock price will likely rise. The company's investors may prefer dividend payments.
This is an example of what theory is in action?
Business
1 answer:
Archy [21]2 years ago
5 0

The above is an example of theory is in action which is difference between Dividends and Buybacks.

<h3>What is a dividend?</h3>

Dividends are leftover of a company's profit paid to shareholders. It is what is paid to those who own shares in a company at the end of the financial period.

It is to be noted that companies reward their shareholders by paying dividends or by buying back shares of stock.

Learn more about dividends here: brainly.com/question/3161471

#SPJ1

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kaheart [24]

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They should be planned for.

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4 0
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VMariaS [17]

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Taxable income is the part of your gross income that the IRS deems a problem with taxes. It includes each earned and unearned profit. Taxable earnings are normally less than adjusted gross income because of deductions that reduce it.

Gross profits consist of all income you obtain that is not explicitly exempt from taxation below the Internal Sales Code (IRC). Taxable profits are the portion of your gross earnings that's sincerely a problem with taxation. Deductions are subtracted from gross profits to reach your amount of taxable earnings.

Learn more about Transaction exposure here brainly.com/question/15021490

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6 0
1 year ago
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