Why do firms choose to make large increases in their dividends or start a stock repurchase program?


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Why do firms choose to make large increases in their dividends or start a stock repurchase program?


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This question has 2 parts. Respond to BOTH parts and include some recent 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. (original work/not information supplied on chegg)

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?