Intel, the world's dominant on the design and manufacturer of microprocessors ("brains" of personal computers), a great amount of cash (net debt). In addition, he plans to continue to accumulate cash at an unprecedented rate. The company has grown to such an extent that he can start paying money of its shareholders? What payment policies should choose it? Intel will continue to face competition from imitators of its processors in the future, it is not clear whether its cash reserves may not be a competitive weapon in the competition. The case focuses on financial policy issues and how they then interact with a very unusual and dynamic look of the product market competition and innovation. Can be used as a one-or two-day study the following issues: the complementarity of external factors and the cost of finance, appropriability of return on investment, the role of finance in the high-tech sectors and rapid innovation, strategic use of funds, capital structure analysis and the policy cash payments, the use of fiscal policy as competitive weapon, and time for the sale and purchase of equity-linked instruments. "Hide
by Kenneth A. Froot Source: HBS Premier Case Collection 22 pages. Publication Date: February 11, 1992. Prod. #: 292106-PDF-ENG
Related Case Solutions & Analyses:
Procter & Gamble: Global Business Services
Mall of America (A)
Governance Reform at Research in Motion (RIM) Ltd.
Stock Market Crash Of China
Transatlantic Trade and Investment Partnership
Creating the First Public Law Firm: The IPO of Slater & Gordon Limited
Northampton Group Inc.: How to Increase Shareholder Value
Braddock Industries, Inc.
Craig Manufacturing
International Economics, 5. Politics, Globalization, and the State
