Explain who would stand to benefit from repayment of debt

Assignment Help Microeconomics
Reference no: EM131303163

The Mini Project Task

Your assignment is to create a 5-page paper addressing the following questions:

a. Imagine that you are a large stockholder in the company. Would you rather see the $15 million be used for a special dividend rather than a buyback? Why or why not?

b. Imagine that you are a small stockholder in the company. Would you rather see the $15 million be used for a special dividend rather than a buyback? Why or why not?

c. Would it be smarter to pay off debt using the $15 million rather than executing a dividend or payback? Why or why not? Who would stand to benefit from the repayment of debt?

d. What is your recommendation as to do with the $15 million? Support your recommendation using what you have learned while in the class.

The analysis requires the additional components:

- APA formatted paper including:

o Font: Times New Roman, 12 point, and double spaced.
o Margins: One inch margins, all around.
o Indents: One-half inch indent as to begin a paragraph.
o Proper APA citations and references.
o Proper use of Level 1 headings as to label the introduction, main body, and conclusions segments.
o Proper use of Level 2 headings as to label the sections within the main body and conclusions.
o A proper title page.
o A reference page utilizing hanging indents and alphabetized by the last name of the first author.

- Free of spelling errors and minimal use of passive voice.

Reference no: EM131303163

Questions Cloud

The us federal reserve and foreign central banks : Compare the length of terms of office for central bank heads and members of central bank governing boards between the U.S. Federal Reserve and foreign central banks.
Preparing employees for overseas assignments : A human resources department needs to take into account a variety of practical matters when designing training for an international assignment. What should the department focus its training resources on when preparing employees for overseas assign..
What is the hazard communication standard : What is the hazard communication standard? Explain how this standard applies to the workplace. What should employers do in order to be compliant with this standard? What are the possible implications to an employer for failure to adhere to this st..
Favor adult sanctions for juvenile offenders : Do you agree with people who favor adult sanctions for juvenile offenders; for example, "If you're old enough to do the crime, you're old enough to do the time"? Why or why not? Where should the line be drawn? Why?
Explain who would stand to benefit from repayment of debt : Would it be smarter to pay off debt using the $15 million rather than executing a dividend or payback? Why or why not? Who would stand to benefit from the repayment of debt?
How is the european central bank organized : How is the European Central Bank organized? What special problems does it confront? What difficulties did it encounter during the financial crisis of 2007-2009?
Compute the probability of the top event : What equation should you use to compute the probability of the top event? Using the equation, what numerical value do you get for the top event probability
What problems did ecb encounter during the financial crisis : What problems did the ECB encounter during the financial crisis and its aftermath that might lead to attacks on its leadership?
How has technology impacted cost if at all : Given your readings, present two reasons for increased health care costs. How might such costs be controlled while still providing quality health care?As we review health care costs, how has technology impacted cost if at all?

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd