Stock Repurchases

12/15/21, 7:51 AM Originality Report … 1/3 % 27 % 12 %4 SafeAssign Originality Report CSU SafeAssign Plagiarism Check Tool •SafeAssign Originality Report Generator III % 43 Total Score : High risk George Landry Submission UUID :0ace507a-cbcd-3f99-5458-665ad4515cbe Total Number of Reports 1 Highest Match 43 % Stock Repurchases.edited.docx Average Match 43 % Submitted on 12/15/21 07:50 AM EST Average Word Count 820 Highest : Stock Repurchases.edited.docx % 43 Attachment  1 Institutional database  (6) Student paper Student paper Student paper Student paper Student paper Student paper Global database  (1) Student paper Internet  (2) corporate ukdiss Top sources  (3) Excluded sources  (0) View Originality Report – Old Design Word Count :820 Stock Repurchases.edited.docx 1 3 5 8 6 7 9 4 2 9 Student paper 1 Student paper 3 Student paper 5 Article Review and Stock Repurchases George Landry Columbia Southern University 12/15/2021 Article Review One of the ways companies use to raise equity is by use of selling shares to investors. In many cases, this may be accomplished by giving money back through shares or stock buybacks. There are several reasons why companies choose to raise equity by selling shares to investors. First, it is advantageous for companies to re- purchase shares when they are undervalued. Secondly, this can be done when the company intends to amalgamate ownership and increase Stock re- purchases enhance a more An example of a company that has introduced stock buyback alternatives is Royal Dutch Shell as described by Apana Narayan in the article “Royal Dutch Shell Finally Delivers Big Stock, But Shares Break support”. In the article, Apana Narayanan gives an analysis of the performance of the oil company and other related competing companies. In the article, the from its operations. Due to the decline of the RDSA debt ratio and capitation to 23.6% during the Shell Company The program was used by the RDSA to reduce the debt despite the cost of the shares continuing to 1 2 1 3 12/15/21, 7:51 AM Originality Report … 2/3 Source Matches  (13) Student paper 100 % ukdiss 65 % Student paper 71 % Student paper 81 % corporate 69 % fall as other companies like ConocoPhillips bene Dividend Policies A dividend is a compensation that a business or company gives its shareholders in return for investing in the company. It can also be de given to shareholders by companies out of pro Dividend policies are policies that companies use to structure their dividend payout to shareholders. Scholars argue that policies governing dividends have become obsolete in theory and practice because stockholders can sell a percentage of their shares any time they require funds. The The third one is the irregular dividend policy (Husain and Sunardi, 2020). The third one is a stable dividend policy and the last one is no dividend policy. The dividend policies help an organization to come up with many dividends that are payable by the company to its shareholders and the frequency at which the dividends can be paid out to the shareholders. Importance of stable dividend policies A company that has a stable dividend policy is always in a position to pay out steady dividends to shareholders at every given period irrespective of unpredictability (Kadim et al., 2020). A stable dividend policy indicates the magnitude of risk that is associated with Stockholders and traders analyze the unpre- dictability of security to evaluate the past In a stable dividend policy, a company does not need to change the number of dividends in case of short-term changes in revenue of the company. This ensures the stockholders that the company is stable and its future is predictable. Reasons stock repurchases The This is intended to enable the company to buy more shares to enhance the cost of the remaining shares. Secondly, stock repurchasing helps to distribute capital to shareholders with enhanced Third, stock re-purchasing aims at taking advan- tage of the bene This is a substitute for the payment of dividend cash in nations where the tax rate on capital gain is lower as compared to the tax rate of the dividends. Lastly, stock re-purchases help to absorb the increase in the number of shares remaining due to stock options. Individual The stock re-purchase of a company drives the value for the shareholder. Calculations on EPS use a weighted average of the remaining shares over a given period. This is contrary to the number of outstanding shares at a given point. Secondly, the approximate price of shares re-purchase may tual market price of the shares. When prices of shares are not stable, returns per share are not predictable (Husain and Sunardi, 2020). This will make the market un- stable and hence discourage investors from buying stock from the company.

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