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
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?