This question has 2 parts. Respond to BOTH parts and include some news or advice from an article that is less than a year old (2015-2016) that is applicable to this discussion to receive full credit. Masters/graduate level writing required.
Part 1: Why do firms choose to make large increases in their dividends or start a stock repurchase program? Why would they choose one of these payout methods over another?
Part 2: Why do firms choose to cut or eliminate their dividends? What usually happens to the stock price of a company that does this?