Question: 5. Do you think that dividends matter in the valuation of the firm? What would be an argument that suggests they don't matter? What would
5. Do you think that dividends matter in the valuation of the firm? What would be an argument that suggests they don't matter? What would be some counter arguments that suggest that they do matter?
6. A CFO is evaluating different options for returning value to shareholders, and is considering 1) cash dividends, 2) stock dividends, or 3) share repurchases. Explain to her which you think is the best choice to deliver value to shareholders, and which you think is the worst. Be sure to justify your answer.
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