Microsoft's Dividend Policy
| Case Code: FINA011 Case Length: 16 Pages Period: 1975 - 2004 Pub Date: 2004 Teaching Note: Not Available |
Price: Rs.500 Organization: Microsoft Corporation Industry: Information Technology Countries: Global Themes: - |
Abstract Case Intro 1 Excerpts
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)
Buy this case study (Please select any one of the payment options)
| Price: Rs.500 |
Price: Rs.500 | PayPal (11 USD) |
