Key investor takeaways from the shareholder meeting are as follows:

• Boeings net income for 2018: $10.46B
• Boeing issued a 10% stock dividend on December 4.
• Market value per share on December 4: $342.50 (close)
• Boeing executives revealed a plan to build a new $52B factory in South Carolina, opening a third production line for the 787 Dreamliner. Their plans include a $5B bond issue to finance, in part, the new factory. In addition, they announced a cut of 20% in the annual cash dividend from $6.84 to $5.47 per share starting in 2019.
• Market value per share on December 31: $322.50 (close). Retained earnings as of December 31: $55.94B. Availability of retained earnings for dividends on December 31 is restricted by $50B owing to the planned new 787 factory.
• Boeing executives explained that the drop in share price at December 31 was due solely to a downturn in the overall market and not to past or projected operating performance.

Questions

1) "Instead of a stock dividend, why didnt you just declare a cash dividend and let us buy the new shares that were issued?"

2) "Why are you cutting back on the dividends that I receive?"

3) "If you have set aside $20B in retained earnings for the new 787 factory, why are you borrowing $5B and not just the $2B needed?"

Be sure to take into account the perspective and circumstances of the investor, as noted parenthetically, when analyzing the selected questions and preparing your response.