Capital Return Overview

1. Capital Return Overview

Now, we've definitely discussed the main purpose of corporate finances being to maximize the value of a business through planning and implementation. We've also talked about the three main sections in this course. Well, we're now into the third section on capital return. Now, a corporation would only consider capital return, if that corporation could not find suitable investments, ie, investments that were actually creating value for shareholders. As long as the firm is finding suitable investments, then it will be proceeding with those investments and looking at capital financing, which is appropriate for those investments. But when it cannot find appropriate investments, it then considers capital return, which we're going to discuss now, and we're going to learn the different ways in which corporations can return capital to it shareholders.

2. Let's practice!

Create Your Free Account

By continuing, you accept our Terms of Use, our Privacy Policy and that your data is stored in the USA.