(a)
Cash dividends: The amount of cash provided by a corporation out of its distributable profits to its shareholders as a return for the amount invested by them is referred as cash dividends.
To explain: the actions that Company V took with its excess cash.
(b)
To find out: the percentage of
(c)
To explain: the reason for Company V might choose to pay lower dividends and instead use its excess cash for a stock buyback program.
(d)
To explain: the reason for the change in the nature of the shareholders that invest in media companies that might be caused due to the payment of a steady, significant dividend.
(e)
To state: the message that might an increased dividend or stock dividend or stock buybacks send to the shareholders.
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