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Answer: Special cash dividends and share repurchases
**Explanation:** - **Special cash dividends** are one-time distributions that signal the cash increase is temporary and not expected to recur. - **Share repurchases** are flexible and can be used to distribute excess cash without committing to ongoing payments. - **Regular cash dividends** create an expectation of continued payments, which is inappropriate for temporary cash increases. Therefore, **special cash dividends and share repurchases** are best suited for distributing extraordinary cash flows that are not expected to continue.
Author: LeetQuiz Editorial Team
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Which payout methods are best suited for distributing extraordinary increases in a company’s cash flow that are not expected to continue in future years?
A
Regular and special cash dividends
B
Special cash dividends and share repurchases
C
Regular cash dividends and share repurchases