FIN571 Something to Think About- Board Member Week 5 - 18724

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Suppose a firm is facing the possibility of a necessary dividend rate cut because of poor economic conditions. Suppose further that you are a member of the firm’s board of directors. How would you respond to the argument of another board member that the firm should publicly deny the possibility of such a cut until the board has decided that the cut is an unavoidable necessity? I know there are some talented board members in this class!


Why is a pro forma analysis an important prerequisite to choosing a capital structure?  If you were CFO would you require having one for your company large capital expenditures?

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All companies should make all their business decisions with their shareholders in mind. Hiding a truth from shareholders is not a