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    Finances Pertaining to Microsoft

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    Pick one item below and discuss and/or explain with your own words what it is and how it applies to Microsoft.
    1. Dividend policy
    2. Stock buyback
    3. Financial leverage
    4. Earnings per share

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    Solution Preview

    Earning per share (EPS) is defined as the earning available to common stockholders divided by the number of shares of common stock outstanding. Earning available to common stockholders is computed as Net Income less preferred stock dividends paid. And, one can find the number of share of common stock on the balance. For example: if a company has a net income of 5 million, ...

    Solution Summary

    This response explains the concepts of dividend policy, stock buyback, financial leverage, and earnings per share as they relate to Microsoft.