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Financial Management

The Impact of Share Repurchase

Cash Dividends, Stock Dividends, and Share Buyback Mechanics

2 CPD credits on completion
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Certificate on completion
Downloadable resources
Self-paced learning

About This Course

Course Information

The learning outcomes from this CPD technical update course includes: The impact of cash dividends. The effect of stock dividends on a company The mechanics of share repurchase. Comparing dividends and share repurchases

Certificate on Completion

This course is made up of videos, questions and additional reading materials, and accounts for 2 units of CPD. One unit is the equivalent of one hour of learning.

Course Sections

This course is made up of the following sections:

  • How dividends affect a company (video)
  • How dividends affect a company (quiz)
  • Benefits of share repurchase (video)
  • Benefits of share repurchase (quiz)
  • Dividends versus share repurchase (video)
  • Dividends versus share repurchase (quiz)

What You Will Learn

  • Explain how regular dividends, extra dividends, scrip dividends, and liquidating dividends each affect a company's financial position
  • Describe the mechanics of share repurchase through open market purchases, tender offers, and direct negotiation
  • Calculate the effect of a cash dividend versus a share repurchase on shareholder wealth, book value per share, and earnings per share
  • Compare how stock splits and stock dividends change the number of shares outstanding without altering total equity value
  • Identify the tax, signalling, and flexibility considerations that influence whether a company chooses dividends or share buybacks
  • Assess the advantages and disadvantages of share repurchases from both company and shareholder perspectives

Who This Course Is For

  • Finance professionals involved in corporate payout decisions or advising on dividend policy
  • Accountants who need to understand the financial statement impact of dividends and share buybacks
  • Analysts evaluating how distribution policies affect company valuation and earnings per share

Prerequisites

  • Understanding of basic financial statements, particularly shareholders' equity and retained earnings
  • Familiarity with concepts such as earnings per share and book value per share

Frequently Asked Questions

Course Details

CPD Credits2
CertificateYes

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Everything included in your subscription:

CPD certificate on completion
Downloadable resources
Self-paced learning
Expert-led content
24/7 access
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