分红

问题如下：

Jack Harmon is 60 years old and owns a construction firm valued at $45 million. Even though he's more than capable and enthusiastic about running the business for the time being, he seeks advice from Emily Foster on how to pass on the business to his heirs or find new proprietors. Harmon is married with three children. His oldest daughter holds a key position as a project supervisor in the company, while his two sons have ventured into other fields. One son is a graphic designer, and the other is a journalist, neither showing any inclination towards the family business.

Over the years, while Harmon received a salary, a significant portion of the company's profits was funneled back into the business for growth. As an opening move in the ownership transition, he arranges for the company to take out a loan to buy back 12% of his shares. Moreover, he commences distributing 25% of the earnings as dividends.

Jack Harmon gets his firm to take out a loan for a 12% share buyback and hikes dividends. Which statement about these acts is most accurate?

选项：

A.Not related to recapitalization; only impacts equity. B.Classic recapitalization, changes debt - equity mix. C.Only dividend hike is recapitalization; buybacks don't affect capital structure.

解释：

Recapitalization means changing the capital structure of debt and equity. Here, the loan (more debt) for share buyback (less equity) and dividend change alter the mix. A is wrong as buybacks via debt affect both. C is wrong as buybacks impact capital structure.