A __ is an alternative method to cash dividends which is used to pay out a firms earnings to shareholders.?

Question

A)merger

B)tender offer

C)payment-in-kind

D)stock split

E)share repurchase

Answer 1

C)payment-in-kind

Answer 2

C sounds like the only logical answer

Try this: http://www.investopedia.com/terms/p/paym...

Answer 3

Payment-in-kind can be a form of dividend, but if a company has a lot of cash on it's books that it wants to return to shareholders, a share repurchase plan is like a voluntary dividend, where the shareholders can either opt to sell their stake in the company in exchange for cash, or can just take the bonus in marginal EPS.

A share repurchase plan is a good option for a company if they don't want to mess with their recurring dividend policy.