BUSINESS FINANCE II (İŞLETME FİNANSI II) - (İNGİLİZCE) Dersi Payout (Dividend) Policy soru detayı:

CEVAP:

 

Another way to pay cash to its shareholders is repurchase of its own share of stock, in another words known as a buyback. A company sometimes repurchases stock to distribute excess funds, especially when the stock price is considered as undervalued. In some cases, when a company has more equity than its target capital structure, the company may issue debt and use the proceeds to repurchase stocks for adjusting its capital structure. A stock repurchase can be also used to protect against takeover attempt. Also, stock options have been given to employees as bonuses and companies repurchase their own stock to ensure sufficient stocks are available when employees exercise the options.