In the supplemental readings you saw some examples of firms
that have announced dividends, stock splits, and reverse stock splits. The
assigned research paper reading looked at firm’s decisions and what factors
appear to affect payout decisions. For this activity you will write a short one
page to one and a half page paper on a firm of your choosing meeting the
following criteria:
Publicly traded
You can provide a link to the firm’s profile and financial
summary (similar to what can be found in Yahoo finance (Links to an external
site.)). Note: this can be other websites and non U.S. stocks can be used as
well
An announcement that a firm has split, repurchased,
dividend, or other payout discussed in the module’s readings in the past 3
months. The announcement could include the announcement of a firm cancelling
their dividend payments as well as the various payouts.
For the selected firm provide a brief profile of the firm
including the primary businesses/industry of the firm. Provide an overview of
the industry. Address issues such as whether the firm is considered being in a
growth industry, mature industry and the role/impact your firm has on the
industry.
Discuss the payout strategy selected by your firm. What did
the firm announce? Why did the firm make the announcement? Based on your study
of dividends and other payouts does the strategy make sense? What signals is
management sending with the announcement? Do you agree with the decision? As a
shareholder would you be pleased with the announcement? Why or why not?
This activity is due at the end of the module week. Attach the announcement to your submission.
Please save your file using the following naming convention:
LastName_FirstName_PayOut_Strategy.docx
