Disclaimer: These are excerpts from student assignments conducted as part of a Corporate Finance class. The opinions represented do not necessarily agree with mine. I do not vouch for the quality of the recommendations or the accuracy of the numbers. Follow the recommendations on your own risk.

Students applaud disciplined approach to capital allocation, but also think zero-debt policy too cautious: recommend debt instead of proposed equity issuance

Proposal Excerpt of Student Recommendations
For Against
(2)Authorize share repurchases
  • Current equity levels almost 100%, adjusting capital structure towards more net debt recommended
(3)Authorize equity issuance (without pre-emption rights)
  • Capital structure is already equity-dominated, should issue debt instead of equity Offerings without pre-emptive rights likely to dilute current ownership

Link to proxy statement: