Share buybacks and dividends

Read the following WSJ article, and submit your answer report (about 2-3 pages) Microsoft to Buy Back Up to $40 Billion in Stock By Kimberly Chin | September 18, 2019 https://www.wsj.com/articles/microsoft-to-buy-back-up-to-40-billion-in-stock-11568845113 Topics: Share Buybacks, Dividends Questions: • 1. One could argue that the significant return of capital was a signal that management does not have positive NPV projects in which to invest. However, the shares rose 1.2% on the announcement. Why do you think this is the case? • • 2. Why would Microsoft undertake both a share repurchase and increase its dividend? Why not just one or the other?