Microsoft Corporation: Dividend Policy
	
		
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Case Details:
  
Case Code : FINC071 
Case Length : 19 pages 
Period : 2002-2010 
Pub. Date : 2011 
Teaching Note : Available 
Organization : Microsoft Corporation 
Industry : Information and Technology 
Countries : US, Global 
 
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Excerpts
Background Note
	
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 MSFT (originally Micro-soft), was founded by Bill Gates (Gates) in the year 1975. He left Harvard Business School (HBS) before completing his studies and formed the company with his friend Paul Allen (Paul). Prior to establishing MSFT, Gates and Paul ran a small company named Traf-O-Data and sold a computer to the city of Seattle, which was used to count the city traffic... 
Dividend Policy
In 2003, after it had completed 28 years, MSFT declared a cash dividend - the first time it was doing so. 
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It was the first of the listed company in DOW 30 which had not paid a cash dividend for such a long period. After 2003, the company's management started paying cash dividends as well as repurchasing common stock on a regular basis (Refer to Figure I for The Ways to Apply Profit after Tax)...
 
Exhibits
Exhibit I: Quarterly Dividends Declared and Paid Date 
Exhibit II: Company's Various Segments, Products & Services and Competitions 
Exhibit-III: Cash dividend from September 2007 to June 2010 
Exhibit IV: Income Statements from 2002-2010  
Exhibit V: Cash Flow Statements from 2002-2010  
Exhibit VI (a): Balance Sheets as on June 30, 2010  
Exhibit VI (b): Balance Sheets as on June 30  
Exhibit VI (c): Balance Sheets as on June 30  
Exhibit VI (d): Balance Sheets as on June 30  
Exhibit VII: Data of Repurchase of Stocks in Various Years 
Exhibit VIII: Revenue Details of MSFT from July - September 2010  
Exhibit-IX: Expected Profit and Loss Account from FY 2011-2014  
Exhibit X(a): Average Weekly Market Closing Price for MSFT 
Exhibit X(b): Average Weekly Market Closing Price for MSFT 
Exhibit XI: Yield Curve of US Treasury Bill 
 
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