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