Discussion Assignment 5.2

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Dividends

Activity Context

This discussion helps you develop the skills to master the following course competencies:

o Evaluate alternative methods of financing a firm in diverse economic environments.

Activity Instruction

Consider dividend policy, stock repurchases, and stock splits. Discuss how investors may react differently if their company issues dividends or announces a stock split or stock repurchase. Feel free to include examples to illustrate your point.

Support your post as appropriate with the theories presented in this week's required reading. (See below/attachment)

Readings

Use your Corporate Finance: Core Principles and Applications textbook to read the following:

o Chapter 14, "Capital Structure: Basic Concepts." o Chapter 15, "Capital Structure: Limits to the Use of Debt." o Chapter 16, "Dividends and Other Payouts."

Ross, S. A., Westerfield, R. W., Jaffe, J. F., & Jordan, B. D. (2018). Corporate finance: Core principles and applications (5th ed.). New York, NY: McGraw- Hill.

Resources

Discussion Participation Scoring Guide.