Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN: 9781337395083
Author: Eugene F. Brigham, Phillip R. Daves
Publisher: Cengage Learning
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Chapter 15, Problem 4MC

d)

1)

Summary Introduction

Case summary:

Company I is founded to manufacture miniature micro wave frequency receivers and transmitters used in mobile internet and other communication applications. It is relatively less expensive and required less capital to manufacture these products. For this purpose, founders of company didn’t go for an IPO (initial public offerings).

Due to heavy demand situated for these products in the market, they must now access the outside equity capital to fund its growth. So before talking on outside investors, they must decide on a following aspects relating to dividend and distribution policies and other factors.

To discuss: Procedure followed by company when it makes a distribution through dividend payments.

2)

Summary Introduction

To discuss: Stock repurchase and procedure followed by company to make distribution of dividends through stock repurchase.

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