... 'project' (similar in significance to the purchases of Hertz, Jaguar, Land Rover or Volvo) which would achieve an expected rate of return of 8.4% (Table 1) and fit Ford's current strategy1. A PVGO analysis (Table 2) also shows Ford shares have a further $12.69 per share growth potential. So Ford is wise not to provide a special dividend payout as this will weaken PVGO via an increase in the payout ratio as well as a decrease in long term ROE. But for this potential to be realized Ford will still need to highlight what performance factors can achieve this potential. External shareholder Even though Ford was strategically refocusing, had historically strong cash flows2, increasing sales and a healthy 4% dividend yield, share price had previously not been meeting shareholder expectationsi. So from the shareholder viewpoint: * The Visteon spin off added value by increasing the shareholders personal portfolio diversification and thus decreasing their ...

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