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Nuetrik [128]
3 years ago
10

In the presence of personal tax, explain how cash dividends affect individual shareholders differently than stock repurchases.

Business
1 answer:
Bond [772]3 years ago
4 0

Answer:

The summary of the given statement is summarized throughout the below segment.

Explanation:

Cash dividend declared:

  • The cash payment will be made by stakeholders as either revenue, as well as the company's stock decreases through the equal amount of payment announced each unit.
  • Consequently, the 'Modigliani and Miller' approach does not result throughout almost every gains or loss to particular stockholders

Buyback of Shares:

  • Throughout this scenario, the Business acquires up later the current owners' personal or existing interests.
  • Therefore that on the day of purchase, stockholders receive the identical payment.
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