Please find below the article on dividend and questions to answer:
Report Information from ProQuest
Table of contents
- 1. Borrowing for Dividends Raises Worries
1. Why are conditions currently favorable for firms to issue debt and pay out the proceeds to stockholders?
2. What are dangerous impacts of issuing additional debt mentioned in the article?
3. TransDigm used the proceeds of their debt issue to pay a one-time dividend while Intel used the proceeds to repurchase shares. How does a repurchase differ from a one-time dividend? Why do you think the two firms chose different approaches to distributing cash to shareholders?