THIS IS ACCORDING TO Case #26: Gainesboro Machine Tools Corporation 1.

THIS IS ACCORDING TO Case #26: Gainesboro Machine Tools Corporation1. In theory, to fund an increased dividend payout or stock buyback program, a firm might invest less, borrow more, or issue more stock. Which of these three elements is Gainsboro's management willing to vary, and which elements they would like to remain fixed as a matter of company policy?2. How might various providers of capital, such as stockholders and creditors, react if Gainesboro repurchased its shares? Should Gainesboro do so?