Why do companies hand cash to shareholders as dividends, and why do they sometimes buy back their own shares instead? And how do uneven information and hidden actions – in insurance and company decisions – change the way we value a business? This chapter ties together payout choices, problems caused by information gaps, and the tools for estimating a company’s cost of capital. By the end, you’ll see that a simple dividend cheque is really a clever signal, a tax puzzle, and a lever for company value all at once.