Microsoft's Dividend Policy
|
|
ICMR HOME | Case Studies Collection
Case Details:
Case Code : FINA011
Case Length : 16 Pages
Period : 1975 - 2004
Pub. Date : 2004
Teaching Note :Not Available
Organization : Microsoft Corporation
Industry :
Information Technology (IT)
Countries : Global
To download Microsoft's Dividend Policy case study (Case Code:
FINA011) click on the button below, and select the case from the list of available cases:
Price:
For delivery in electronic format: Rs. 500;
For delivery through courier (within India): Rs. 500 + Shipping & Handling Charges extra
»
Finance Case
Studies
» Short Case Studies
» View Detailed Pricing Info
» How To Order This Case
» Business Case Studies
» Case Studies by Area
» Case Studies by Industry
» Case Studies by Company
Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
Chat with us
Please leave your feedback
|
|
<< Previous
Excerpts
Background Note
|
Bill Gates (Gates) founded Microsoft (originally Micro-soft) in 1975 after dropping out of Harvard at the age of 19. Gates teamed up with high school friend Paul Allen (Allen) to sell a version of the programming language BASIC. While Gates was at Harvard, the pair wrote the language for Altair, the first commercial microcomputer...
Dividend Policy
Till 2002, Microsoft had not paid a dividend. Until its dividend announcement in 2003, Microsoft was the only corporation among the Dow 30 that had not paid a dividend. (See Exhibit: II)
|
|
Although the payment announced in 2003, constituted a relatively small percentage of Microsoft's overall profits, the decision came as welcome news to some analysts...
|
|
The Road Ahead
Reactions to Microsoft's announcement were varied: One portfolio manager commented,
“In my opinion that (one-time dividend) doesn't do anything for anybody. I would rather have seen them buy back more shares more quickly than do the special dividend”...
Exhibits
Exhibit I: Microsoft Key Numbers
Exhibit II: Microsoft – Dividend History
Exhibit III: Microsoft – Dividend FAQ
Exhibit IV: Microsoft's Biggest Shareholders (Report date as of 6/30/04)
|
Exhibit V: Dividend Yields of Few Technology Companies
Exhibit VI: Microsoft – Timeline of Acquisitions
Exhibit VII: Microsoft - Selected Financials
Exhibit VIII: Microsoft – Income Statement
Exhibit IX: Microsoft – Balance Sheet
Exhibit X: Dividends Paid By Few Technology Companies (As on August 2004)
|
|
