Boeing Boosts Stock Buyback to $12 Billion

Boeing is increasing its annual share buyback to $12 billion and raising its quarterly dividend from $0.73 to $0.91, exceeding analyst expectations. The company completed $6 billion in buybacks for 2014. Buyback authorizations allow flexibility but do not guarantee full execution. The market appreciates these cash returns, though they reflect financial engineering rather than direct business reinvestment. Companies often prioritize shareholder returns over capital expenditures, seeking external growth opportunities.

What is the new quarterly dividend announced by Boeing?

• $0.91

• $0.73

• $0.83

• $1.00

How much has Boeing completed in share buybacks for 2014?

• $10 billion

• $8 billion

• $6 billion

• $4 billion

What does a buyback authorization imply for a company?

• It cannot buy back any shares.

• It can choose to buy back up to the authorized amount.

• It must buy back shares immediately.

• It must buy back the full authorized amount.

What is a common trend among companies regarding cash returns?

• Expanding office spaces

• Increasing employee salaries

• Returning cash to shareholders

• Investing heavily in new technologies

What is the term used to describe the focus on shareholder returns over business reinvestment?

• Economic forecasting

• Corporate restructuring

• Financial engineering

• Market speculation