Companies for building up cash and not paying dividends

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Reference no: EM13211240

1. Why did Microsoft decide in 2004 to double its cash dividend and buy back up to $30 billion of the company's stock over the next four years?

2. Google and Apple are companies that are very cash rich but have paid no dividend historically.

(A) What could have been the rationale of the companies for building up cash and not paying dividends?

(B) Apple has begun to pay a dividend, and it looks like Google might do the same.

Can you research why that might be the case. What could have changed for the companies?

Reference no: EM13211240

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