Northboro Machine Tools Corporation

Darden Business Publishing Cases

ISSN: 2474-7890

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. and Opitz, C. (2017), "Northboro Machine Tools Corporation", Darden Business Publishing Cases. https://doi.org/10.1108/case.darden.2016.000217

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Publisher

:

University of Virginia Darden School Foundation

Copyright © 1997 by the University of Virginia Darden School Foundation, Charlottesville, VA. All rights reserved.

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