Graded Homework

Module 8 discussion

This discussion question has two parts. Respond to both
parts to receive full credit for this assignment.

Part 1: Why do firms choose to make large increases in their
dividends or start a stock repurchase program? Why would they choose one of
these payout methods over another?

Part 2: Why do firms choose to cut or eliminate their
dividends? What usually happens to the stock price of a company that does this?

Include some news or advice from an article that is less
than a year old that is applicable to this discussion.