lecture 2 chart

Question 1

who is impacted by dividends

Answer 1

all shareholders

Question 2

who is impacted by stock repurchases

Answer 2

shareholders can decide if they want to sell their stock or not

Question 3

what happens to the shares outstanding after a dividend

Answer 3

nothing chnages

Question 4

what happens to the shares outstanding after a stock repurchase

Answer 4

decreases as company is buying shares back

Question 5

what happens to dividend after tax

Answer 5

treated as dividend income

Question 6

what happens to stock repurchases after tax

Answer 6

treated as capital gain