Problem:
Case Study: Ford Motor Company's Value Enhancement Plan (A), Harvard Business School, 9-201-079.
Answer the following questions
1. Should Ford:
- go ahead with the complicated VEP,
- or issue a cash dividend, or
- conduct a share repurchase?
In other words, would you vote in favour or against the VEP plan? Explain.
2. If the VEP plan is implemented, what would be your choice (cash or shares or a combination) if you were one of the following:
- a Ford family member holding Class B shares
- an institutional investor, such as TIAA-Cref or the Calpers
- a regular outsider shareholder
You must provide a short answer for all three investor types above.
Summary
This question is basically belongs to Finance as well as it is about Harvard Case Study Ford Motor Company's Value Enhancement Plan (A). Questions about the case study have been given in the solution in detail.