What are the two primary ways equity stocks can increase a shareholder's wealth?

Dividends and stock splits Dividends and stock buybacks Stock splits and mergers Mergers and acquisitions

How do stock buybacks impact a company's earnings per share?

Earnings per share decrease Earnings per share remain unchanged Earnings per share increase Earnings per share fluctuate unpredictably

What is the primary source of funds used by companies to finance stock buybacks?

Debt financing Venture capital Retained earnings Government grants

Which of the following is a key difference between dividend payouts and stock buybacks in terms of investor earnings?

Dividend payouts offer guaranteed returns, while stock buybacks do not Stock buybacks offer guaranteed returns, while dividend payouts do not Dividend payouts provide periodic income, while stock buybacks generate capital gains Stock buybacks provide periodic income, while dividend payouts generate capital gains

What type of tax is levied on dividend income in India?

Capital gains tax Sales tax Dividend distribution tax Value-added tax

What factor determines the tax rate applicable to capital gains realized from stock buybacks?

The size of the company The investor's income level The holding period of the shares The total amount of capital gains

Which of the following statements accurately reflects the stability of returns from dividend payouts and stock buybacks?

Dividend payouts are generally more stable than stock buybacks Stock buybacks are generally more stable than dividend payouts Both dividend payouts and stock buybacks offer guaranteed returns Both dividend payouts and stock buybacks are subject to market fluctuations