Question one Choice of capital structure Capital structure varies among companie
Question one Choice of capital structure Capital structure varies among companie
Question one Choice of capital structure Capital structure varies among companies in the same industry and across industry groups. A company’s choice of debt versus equity depends on many factors. Discussion Questions: 1. In what ways are the capital structures of U.S. and non-U.S. firms different? How are they similar? 2. What important factors in addition to quantitative factors should a firm consider when it is making a capital structure decision? 4 4 0 3 Question 2 Choice of dividend policy Some stockholders want and expect to receive dividends, whereas others would rather see those funds invested in the company to increase its stock process. The behavior of most firms and stockholders suggests that dividend policy affects share prices. Discussion Questions: 1. Microsoft has spent cash for regular dividends, a special dividend, and stock buybacks. From the shareholders’ viewpoint, what value have they received from each of the three projected cash disbursements? 2. Do you agree that corporate managers would manipulate their stock’s value prior to a buyback, or do you believe that corporations are more likely to initiate a buyback to enhance shareholder value? sources usefull but not neccesary

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