Northboro Machine Tools Corporation
Publication date: 20 January 2017
Abstract
In mid-1992, Christine Olsen, the chief financial officer (CFO) of this large CAD/CAM equipment manufacturer, must decide on the magnitude of the firm's dividend payout. A subsidiary question is whether the firm should embark on a campaign of corporate-image advertising and change its corporate name to reflect its new outlook. The case serves as an omnibus review of the many practical aspects of the dividend decision, including (1) signaling effects, (2) clientele effects, and (3) finance and investment implications of increasing dividend payout.
Keywords
Citation
Bruner, R.F. and Opitz, C.S. (2017), "Northboro Machine Tools Corporation", . https://doi.org/10.1108/case.darden.2016.000217
Publisher
:University of Virginia Darden School Foundation
Copyright © 1997 by the University of Virginia Darden School Foundation, Charlottesville, VA. All rights reserved.