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Why do firms choose to cut or eliminate their dividends

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Reference no: EM131160933

This question has 2 parts. Respond to BOTH parts and include some news or advice from an article that is less than a year old (2015-2016) that is applicable to this discussion to receive full credit. Masters/graduate level writing required. 

Part 1: 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?

Part 2: Why do firms choose to cut or eliminate their dividends? What usually happens to the stock price of a company that does this?

Reference no: EM131160933

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