Question #1: According to the finance theory we have discussed so far in the course, what rule(s) should managers use to decide how to deploy capital? Does this line up with the discussion in the article? Explain why or why not. What are some ways that shareholders can ensure that managerial decisions are made in their best interests?
Questions #2: Is it reasonable to conclude from reading the article that firms would achieve higher TSR by making acquisitions or stockpiling cash? Why or why not? What additional information would you need to properly assess the impact on shareholder wealth of the various capital deployment choices described in the article?