The Impact of Share Repurchase
Cash Dividends, Stock Dividends, and Share Buyback Mechanics
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
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