03/10/2025
Master capital efficiency with these tips on Dividend Recapitalization:
🔹 Grasp the Concept: Dividend recap means taking new debt to pay dividends to shareholders.
🔹 Assess Leverage Impact: Check how additional debt affects the company’s debt profile.
🔹 Consider Shareholder Benefits: Provides returns to investors without selling equity.
🔹 Review Market Conditions: Suitable when debt markets are favorable and borrowing costs are low.
🔹 Long-Term Viability: Ensure the company’s cash flows can comfortably service the added debt.
Dividend recap can maximize shareholder returns but requires careful financial planning.
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