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From: | "terry weston" <tweston@sympatico.ca> |
Date: | Thu, 17 Oct 2002 14:07:57 -0400 |
<<<<<<<The annoying thing is they could
obtain the same increase in ROE by
just paying the excess capital back to the shareholders in the form of a special dividend. So WHY DIDN'T THEY DO IT!>>>>>>>>>> Hi Snoopy I guess the obvious reason is
that the special dividend would be taxable to the shareholder.
Whereas a buyback returns capital in a cost/tax effective
manner for the buy/hold shareholder. The brokers would also make a little
pocket money.
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