Do stock repurchases and a stock splits give different signals about a firm’s future? Do either of these change the underlying economics of the firm? If so, how?
If you were Tim Cook (CEO of Apple), how would you respond to Mr. Icahn’s effort to persuade Apple to increase the share repurchase program? How would you assess the usefulness of activist investors, such as Mr. Icahn, in improving the management of firms?
Over the past three years, how much stock has Coach repurchased? Why does this not show up as treasury stock in Coach’s balance sheet?
Why would a company stop buying its own stock when the market price goes “too low”? If you were a CFO, what factors would you consider in the timing of share repurchases? Why do you suppose such a large percentage of share repurchase authorizations go unused?
Why is Jarden buying back its own stock? How did they determine that now is the “right time” to do so?
