answersLogoWhite

0

Managers might prefer the purchase of treasury shares over paying dividends because it can enhance earnings per share (EPS) by reducing the number of outstanding shares, potentially boosting stock prices and benefiting shareholders. Additionally, share buybacks offer more flexibility since they can be adjusted based on the company's financial situation, whereas dividends create an expectation for regular payments. Lastly, repurchases can signal to the market that management believes the stock is undervalued, reinforcing investor confidence.

User Avatar

AnswerBot

3d ago

What else can I help you with?

Related Questions

What are the factors affecting owner's equity?

The issuance of stock. The accumulation of profits and/or losses (Retained Earnings). The payment of dividends. The re-purchase of your own stock (Treasury Stock).


What items affect stockholders equity?

Stockholders Equity is increase by profits and the issuance of new stock. Stockholders Equity is reduced by losses, the payment of dividends and the purchase of Treasury Stock (the company's re-purchase of its own stock).


What is an outflow of cash profitable operations the sale of equipment the sale of the company's common stock or the payment of cash dividends?

the payment of cash dividends


Why is money important to a business?

a) Payment of dividends to shareholders. b) To pay off liabilities. c) Purchase of additional assets. By Holy Kofi Ahiabu.


Why is money important to business?

a) Payment of dividends to shareholders. b) To pay off liabilities. c) Purchase of additional assets. By Holy Kofi Ahiabu.


Are dividends a right or a privilege?

Stock dividends are a right if the company is in profit and the shareholders approve the dividend payment.


What are dividends?

an order of payment (such as a check payable to a shareholder) in which a dividend is paid


Who maintains payments into and out of state treasury?

"benefit payment Off-set Treasury"


What are the dividend payment methods?

There are several dividend payment methods, including cash dividends, stock dividends, and property dividends. Cash dividends involve distributing a portion of a company's earnings in the form of cash payments to shareholders. Stock dividends involve issuing additional shares of stock to shareholders instead of cash, increasing their ownership in the company. Property dividends involve distributing assets or property to shareholders as dividends.


What is treasury 310 xxva benefit?

This is a payment for disability compensation


What is us treasury 310 xxva?

This is a payment for disability compensation


What is preference share?

Preference shares are shares whose dividends are paid out first before ordinary shares dividends. They so called (preference shares) because they have 'preference' over ordinary shares for payment of dividends.