The objective of this case is to make students realize the implications of various methods of shareholder rewarding available to a corporation. The corporation has to weigh the consequence of each alternative in context of expected sustainability of future earnings and their growth. The case...

Prior to the Black Monday (October 19, 1987), the twenty-day moving average of the NASDAQ composite index had reached a peak level of 442 on October 13, 1987. It then declined rapidly around the Black Monday by over forty percent and did not reach the pre-crash level again till June 8, 1989....