Please be as exhaustive with your answers as possible. Two-page maximum (single space, size 12). Research these companies’ dividend payment policies (you should use both your own analysis of dividend...

Question 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?
The company during the announcement was already sitting on the $60 billion of cash
and short-term investments which it had made by its monopoly of windows. With its
slow growth in past few years, the Microsoft had been signaling its evolution from one
of the hot stocks to a mature corporation. It has been highly successful in transforming
of various relationships with its competitors, customers as well as its employees.
The company having a flat share price from last few years then, deciding on rewarding
its shareholders by doubling its case dividend and further buy-backing $30 billion of
the company’s stock in nest 4 years. For the officials of the Microsoft, the payout plan
could be considered as recognition that the company’s business had off lately changed.
The PC market had continues towards its growth but at much slower rate that was
increasingly being driven by various replacement purchases.
The corporations had shifted towards the regular annual fees for the upgrades of the
software. Lastly, the move was also aimed to restore the investor confidence in the
company and that Microsoft pays high returns to its shareholders.
Question 2: ...