Cash flow for dividend distributions to shareholders

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Select a publicly-traded company of your choice and answer the following questions.

1.) How should this company use its free cash flow for dividend distributions to shareholders or repurchasing of stock?

2.) What theories and policies seem to best explain the shareholder distributions being implemented by this company? What actual financial data support this observation?

3.) Explain which theory of optimal capital structure seems to best explain how this company maintains its capital structure? How do actual financial data support your conclusions?

Note: The traditional capital structure theories that are examined in the textbook include: (1) Static Tradeoff Theory, (2) Signaling Theory, (3) Reserve Borrowing Capacity, (4) Pecking Order Theory, (5) Using Debt to Constrain Managers, and (6) Windows of Opportunity.

Reference no: EM13256829

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