Explain why do firms choose to make large increases

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Why do firms choose to make large increases in their dividends or start a stock repurchase program? Why would they choose one of these payout methods over another?

Why do firms choose to cut or eliminate their dividends? What usually happens to the stock price of a company that does this?

Include some news or advice from an article that is less than a year old that is applicable to this discussion.

Reference no: EM1362713

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