Instructions: Read the story about Jane Wu, treasurer of Wilson Paper Company. Make sure you understand the context of the story and prepare to address questions about the story.
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.