We just have to explain it right not calculate it like it does in the Kaplan Schweser
I don’t see an LOS that says “calculate” for that. What page are you referencing in CFAI book?
LOS 27.g says explain the choice between paying cash dividends and repurchasing shares. I believe at L1 we had to calculate the effect of repurchasing shares or paying dividends but L2 LOS’ don’t explicitly require this. I’ve heard that all of L1 is fair game tho…
I’m focusing on what signal a cash dividend sends to shareholders and how a share repurchase can be interpreted in the marketplace.
Cool thanks Appreicate it one less thing i need to memorize. Understanding whats going on i guess is the main part here. Yeah Focusing on the signaling and clintelle effect robably the biggies in this reading.