mini_case_MSFT_2003taxcut_2011

mini_case_MSFT_2003taxcut_2011 - 1 Mini case - Microsoft 2...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 1 Mini case - Microsoft 2 MSFT Who Says Tech Firms Dont Pay Dividends! MSFT started paying dividends in 2003 July of 2004 announces change in payout policy Doubled annual dividend to $0.32 per share in 2004 ($3.5B total), dividend yield roughly 1% 10/2008 the annual dividend is $0.52 or 2% yield Repurchase $30B over next 4 years (repurchased $22B over past four years) Announced special dividend of $32 billion ($3 per share), roughly 10% of pre-dividend stock price, payable in December (ex-day is November 15, payable date December 2) 3 How large? Total payouts over next four years $75B MSFT sitting on $60B in cash and short-term investments in 2004 6/2006 = $34B 6/2008 = $24B 6/2010 = $37B 6/2011 = $53B (currently 23% of company value!) Market value = $300B in 2004 and roughly $12B in net income 4 Why so much, why 2004? No longer high-growth technology firm Current anti-trust suits settled Threat of future anti-trust issues limit ability to conduct big acquisitions 2003 dividend tax cut for individuals...
View Full Document

Page1 / 16

mini_case_MSFT_2003taxcut_2011 - 1 Mini case - Microsoft 2...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online