Besides cash dividends, a mature firm with surplus cash may do what?
ASplit its shares
BMake a rights issue
CMake a bonus issue
DRun a share buyback
Answer & Solution
Correct answer: D. Run a share buyback
Repurchasing its own stock returns surplus cash to shareholders without a dividend.
Keep practising Financial Management
Browse all Financial Management questions for CA Inter, or explore more Financial Management topics.
Related questions
The cash conversion cycle measures which risk entailed by growth?A negative cash conversion cycle means a firm collects from customers?Inventory period is 45 days and receivables period is 30 days. The operating cycle is?In common law jurisdictions, to whom do directors owe fiduciary duties?Mandatory audits of financial statements help reduce what?Which pay design best aligns managers with the owners' interests?A manager who expands firm size instead of profits is engaged in what?In the shareholder and management agency problem, who is the agent?