- Why has BH historically chosen not to pay any dividends? Do you agree with this decision? Explain. (Remember that the goal of the corporation should be to increase shareholder wealth.)
- Why do you believe that BH is getting pressure from some shareholders to distribute cash?
- Is Buffett’s reasoning for preferring share repurchases over cash dividends correct?
- What factors should BH consider as they decide whether to begin a cash dividend?
- What would you recommend at this point in time for BH?
- What did BH ultimately decide to do?
Sample Solution
