Special dividend and buyback


Assignment:

Your assignment is to create a 5-page paper addressing the following questions:

a. Imagine that you are a large stockholder in the company. Would you rather see the $15 million be used for a special dividend rather than a buyback? Why or why not?

b. Imagine that you are a small stockholder in the company. Would you rather see the $15 million be used for a special dividend rather than a buyback? Why or why not?

c. Would it be smarter to pay off debt using the $15 million rather than executing a dividend or payback? Why or why not? Who would stand to benefit from the repayment of debt?

d. What is your recommendation as to do with the $15 million? Support your recommendation using what you have learned while in the class.

The analysis requires the additional components:

1. APA formatted paper including:

  •  Font: Times New Roman, 12 point, and double spaced.
  •  Margins: One inch margins, all around.
  •  Indents: One-half inch indent as to begin a paragraph.
  •  Proper APA citations and references.
  •  Proper use of Level 1 headings as to label the introduction, main body, and conclusions segments.
  •  Proper use of Level 2 headings as to label the sections within the main body and conclusions.
  •  A proper title page.
  •  A reference page utilizing hanging indents and alphabetized by the last name of the first author.

2. Free of spelling errors and minimal use of passive voice

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Accounting Basics: Special dividend and buyback
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