Why do firms choose to cut or eliminate their dividends

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Reference no: EM131961465

APA and 3 ref answer both questions to the fullness.

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?

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

Reference no: EM131961465

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