Read the following WSJ article, and submit your answer report
Microsoft to Buy Back Up to $40 Billion in Stock
By Kimberly Chin | September 18, 2019
• 1. One could argue that the significant return of capital was a signal that management does not have positive NPV projects in which to invest. However, the shares rose 1.2% on the announcement. Why do you think this is the case?
• 2. Why would Microsoft undertake both a share repurchase and increase its dividend? Why not just one or the other?
Sample Solution
