What are the company motives for declaring dividends or stock repurchase programs? 2. How would you argue for a significant increase in both dividends and repurchases instead of using the available cash to make investments, i.e. M&A? 3. Would the tax treatment of dividend income versus capital gains income affect the managers’ decisions to disburse cash via dividends versus stock repurchases?

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A: Given:

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Q: Did the cash flow from operations cover the dividend payment made by the firm (if any)?

A: Hello, since your question has multiple parts we will solve the first question for you. If you want…