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!