Instruction under file “Case 10-Berkshire Hathaway-Case Motivation.pdf”
Essay must include an executive summary, introduction, body (questions for consideration), conclusion.
questions for considerations:
Potential Questions to be addressed in report
submission
- Critically evaluate the advantages and disadvantages of paying cash dividends vs share buy backs vs no cash payments for Berkshire Hathaway. Please ensure you cover the following points in your discussion: clientele effect, signaling effect and agency theory.
- Which alternative (cash dividend, buybacks, no dividends or other policies) would be best for Berkshire Hathaway shareholders? Which alternative would you recommend and why?
Sample Solution