...Policies Serve Corporate Strategy: The Case of Progressive Insurance An Interview with Tom King, Progressive Insurance Identifying and Attracting the “Right” Investors: Evidence on the Behavior of Institutional Investors Brian Bushee, University of Pennsylvania Roundtable on Corporate Disclosure Panelists: John Graham, Duke University; Trevor Harris, Morgan Stanley; Amy Hutton, Dartmouth College; Charles Kantor, Neuberger Berman; Tom King, Progressive Insurance; Rick Passov, Pfizer; Erik Sirri, Babson College; and Joe Willett, (formerly) Merrill Lynch. Moderated by Don Chew. Where M&A Pays and Where It Strays: A Survey of the Research Robert Bruner, University of Virginia Pathways to Success in M&A Mahmoud Mamdani and David Noah, Morgan Stanley In Defense of Incentive Compensation: Its Effect on Corporate Acquisition Policy Sudip Datta and Mai Iskandar-Datta, Wayne State Reappearing Dividends Brandon Julio and David Ikenberry, University of Illinois Making Capitalism Work for Everyone Raghuram Rajan and Luigi Zingales, University of Chicago University, and Kartik Raman, Bentley College Reappearing Dividends by Brandon Julio and David L. Ikenberry, University of Illinois at Urbana-Champaign * I n his 1976 classic called “The Dividend Puzzle,” Fischer Black wrote that there was no convincing explanation for public corporations’ centuriesold practice of paying cash dividends to their shareholders. His argument rested...
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...Introduction: According to a working document of International Trade Center (UNCTAD/WTO), Bangladesh market size for pharmaceuticals and natural products was US$ 517 million and the total herbal medicine was about US$ 50 million in 2004. Local companies satisfied 95% of domestic demand with a 10% contribution from multinational companies. The number of companies was subdivided into pharmaceutical units (232), ayurvedic, homeopathic, biochemic units (308), and herbal and unani-related units (295). The pharmaceutical sector was the second largest sector (after agriculture) in terms of national revenue. Employment in the sector was about 75,000. The value of export for essential drugs was US$ 3.1 million and natural ingredients US$ 48 thousand. It exported drugs to over 50 countries in the world, but mainly to Bhutan, Singapore and Yemen. The export market is on a rise each year. On the other hand, Bangladesh imported essential drugs worth of US$ 21.6 million and natural ingredients of US$ 19 million. Types of products imported included 700 different types of finished products and over 742 basic raw materials. 85% of raw materials are imported from West European countries, USA, Pakistan, Japan, Korea, Singapore, China and India. Importance of the study: Now-a-days, Pharmaceuticals Company is one of the largest industries in the world contributing 13.29% of global GDP. The study helps us gain hands on knowledge in the Pharmaceuticals sector in Bangladesh. The study has...
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...1. Real Estate- India Story (Real Estate Sector Analysis) Introduction The awe and wonder of Real Estate in India lies in its flexible nature and its value appreciation over time. Events and phenonemena sweeping at the industry are pushing the limits of people's aspirations, concept of good living, contemporary working style and recreation, their risk appetite, and money they can commit for high quality construction and smartly done up space. There is also a progressive feel to Tier II cities like Gurgaon, Noida, Faridabad, Bangalore, Hyderabad, Pune, Jaipur, Kochi and Chandigarh apart from the outstanding metros of Delhi, Mumbai, Bangalore and Chennai. Each city has its own distinct advantages that can give a direction to the real estate activity. There is a constant striving for better infrastructure, transparency, quality of life. The same is making inroads into those towns and cities which are closely following in the heels of these cities making then the 'investment cities of India'. Real estate can be divided into three categories: • Commercial • Residential • Agricultural Trends in Real Estate: We can invest into all the given areas and can make return by capital appreciation, rental income, agricultural produce, lease and commercial use. The following factors influence the price and cost of the real estate: * The physical characteristics of the property * The property rights * The time horizon of holding the property *...
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...Licensed to: iChapters User Eugene F. Brigham UNIVERSITY OF FLORIDA Joel F. Houston UNIVERSITY OF FLORIDA Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Eugene F. Brigham UNIVERSITY OF FLORIDA Joel F. Houston UNIVERSITY OF FLORIDA Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Licensed to: iChapters User This is an electronic version of the print textbook. Due to electronic rights restrictions, some third party content may be suppressed. Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. The publisher reserves the right to remove content from this title at any time...
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... bL Levered beta bU Unlevered beta BEP BVPS CAPEX CAPM CCC Basic earning power Book value per share Capital expenditures Capital Asset Pricing Model Cash conversion cycle CF Cash flow; CFt is the cash flow in Period t CR Conversion ratio CV Coefficient of variation Dp Dividend of preferred stock Dt Dividend in Period t DCF Discounted cash flow D/E Debt-to-equity ratio DEP Depreciation D1/P0 DPS DRIP Expected dividend yield Dividends per share Dividend reinvestment plan DRP Default risk premium DSO Days sales outstanding e Approximately equal to 2.7183 EAA Equivalent annual annuity EAR Effective annual rate, EFF% EBIT EBITDA EPS EVA F Earnings before interest and taxes; operating income Earnings before interest, taxes, depreciation, and amortization Earnings per share Economic value added (1) Fixed operating costs (2) Flotation cost FCF Free cash flow FVN Future value for Year N FVAN g GAAP HVN I IFRS IPER I/YR INT IP IPO IRR LIBOR ln(P/X) Future value of an annuity for N years Growth rate in earnings, dividends, and stock prices U.S. Generally Accepted Accounting Standards Firm’s horizon value at t ¼ N Interest rate; also referred to as r International Financial Reporting Standards Periodic interest rate Interest rate key on some calculators Interest payment in dollars Inflation premium Initial public...
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...ANNUAL REPORT 2014 Introduction and financial and corporate responsibility highlights INTRODUCTION AND FINANCIAL AND CORPORATE RESPONSIBILITY HIGHLIGHTS This is the Annual Report of TNT Express N.V. for the financial year ended 31 December 2014, prepared in accordance with Dutch regulations. The preceding Annual Report of TNT Express N.V. for the financial year 2013, was issued on 18 February 2014. Unless otherwise specified or the context so requires, ‘TNT’, the ‘company’, ‘it’ and ‘its’ refer to TNT Express N.V. and all its Group companies as defined in article 24b of Book 2 of the Dutch Civil Code. TNT is domiciled in the Netherlands, which is one of the Member States of the European Union (EU) that has adopted the euro as its currency. Accordingly, TNT has adopted the euro as its reporting currency. In this annual report the euro is also referred to as ‘€’. As required by EU regulation, the consolidated financial statements of TNT have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU. PricewaterhouseCoopers Accountants N.V. has been appointed as the external independent auditor of the financial statements of TNT, and has been engaged to provide reasonable assurance on certain metrics and limited assurance on other metrics of CR. Enquiries related to this annual report may be addressed to Investor Relations and Corporate Communications to the attention of Mr Gerard Wichers (gerard.wichers@tnt.com). ...
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...Brambles Limited ABN 89 118 896 021 Level 40 Gateway 1 Macquarie Place Sydney NSW 2000 Australia GPO Box 4173 Sydney NSW 2001 Tel +61 2 9256 5222 Fax +61 2 9256 5299 www.brambles.com 20 August 2015 The Manager-Listings Australian Securities Exchange Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2000 Via electronic lodgement Dear Sir / Madam BRAMBLES LIMITED FY15 FINANCIAL RESULTS Brambles Limited announces to the market its financial results for the year ended 30 June 2015. The following documents are attached: 1. 2. Appendix 4E – Preliminary Final Report; and Brambles’ 2015 Annual Report including its financial statements, for the ended 30 June 2015. Yours faithfully Brambles Limited Robert Gerrard Company Secretary {RNG 00086515} This page intentionally left blank Results for Announcement to the Market Brambles Limited ABN 89 118 896 021 Appendix 4E Preliminary final report for the year ended 30 June 2015 Year ended 30 June 2015 US$M 2014 US$M % change (actual FX rates) % change (constant FX rates) Statutory Results Continuing operations after Significant Items1: Sales revenue 5,464.6 5,404.5 1% 8% Operating profit 938.5 929.5 1% 8% Profit before tax 826.6 816.5 1% 9% Profit after tax 585.5 584.5 0% 7% (1.1) 683.2 584.4 1,267.7 -54% -51% 37.3 81.2 -54% -51% 5,464.6 5,404.5 ...
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...REFLECTIVE ESSAY #4 What a week last week was. Most the lessons touched me in some way. I liked the discipline model and progressive discipline process. It reminded me on how discipline should be handled. I have seen the progressive discipline model in action and when it is was done right it worked. Once again the speech was a little nerve racking, but I got through it. I missed a lot of my introduction because I got flustered. After I got over my initial nervousness the rest was smooth. It flowed pretty good and I had a good closing. Now I know that I need a little more practice with my speech before jumping into it. I know that I can do better on it so I will use my experience on the last two speeches to improve on the next one. Effective negotiations was an eye opener in the aspect that I do a lot of the technics that were taught, but didn’t know I was using them. I am defiantly more integrative then distributive. I like to build that relationship then to “burn the bridge” with people. I try to make sure that everyone is happy with the out come of the discussion and that everyone got what they wanted. Sometimes it’s not possible and I feel like I have failed when that happen. Continuous improvement was a little difficult to wrap my head around at times. As soon as I thought I had a grasp on it I would get the question that was posed wrong. System 1 and system 2 thinking was like that, but by the end of the lesson I had a better understanding of the...
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...| 67.20 | 208 | Short term | 8TH ICB M.F | 4.94% | 4,94,000 | 52.00 | 220 | Short term | GOVERNMENT TRESURE BILL | 8% | 8,00,000 | 1,00,000 | 08 | Long term | Total | 100% | 9,9,99,055 | | | | SHARE ANALYSIS ON TERM BASIS: In our portfolio there should be three types of share. Short term share, midterm shares and long term share. Short term share: The purpose of holding this kind of share will be generating profit by selling share to secondary market. Those shares where NAV is high, EPS is volatile, Dividend pay out-ratio is fluctuating and share price are frequently changed will be placed in here. We also consider the paid-up capital. In portfolio revision stage we will take decision whether we should sell those shares or not. In our portfolio the following shares are taken as short term share. 1. AB Bank 2. Aftab Auto 3. 8th ICB Midterm share: The purpose of the holding this share will generate dividend income and capital gain. Those share dividend pay out ratio is good, EPS is steady, P/E ration is tolerable and NAV is also quite good enough....
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...1. Profitability A firm which has stability of earnings may formulate a more consistent dividend policy than those having an uneven flow of incomes. This is because they can predict easily on their savings and earnings. Therefore, investors always prefer to invest in those companies. Usually, enterprises dealing in necessities suffer less from oscillating earnings than those dealing in luxuries or fancy goods. 2. Expectations of shareholder Although the rate of dividend is decided by the directors, the expectations of the shareholders having a strong influence on the dividend payout of the firm. On the other hand, the firm may resorts to the retained earnings if the shareholders were desire toward the capital gains or dividend. Typically, shareholders expect two types of returns, there are [i] Capital Gains: i.e., an increase in the market value of shares. [ii] Dividends: regular return on their investment. Cautious investors look for dividends because It reduces uncertainty (capital gains are uncertain). Besides, it is also an indication of the company’s financial strength. Some investors may be invested in shares so as to get regular income to meet their living expenses. 3. Financial Needs of the Company If the company has profitable projects and it is costly to raise funds, it may decide to retain the earnings. Typically, companies tend to have low-paid if there is a profitable investment opportunities. On the contrary, companies often resort to high-paying if the...
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...1. Georgia Lazenby believes a current liability is a debt that can be expected to be paid in one year. Is Georgia correct? Explain. Yes, I believe that Goergia Lazeby is correct, because it is a debt making it a liability that needs to be paid within a year. 7. (A) what are long-term liabilities? Give two examples. (b) What is a bond? A long-term liability is something like a bond or long term notes that should be paid with in one year. A bond is something issues by the government or corporation that is and interest bearing note. 8. Contrast these types of bonds: (a) Secured and unsecured. Secured bonds are backed by collateral unsecured bonds are based on trust of re-payment. (b) Convertible and callable Callable bonds mean you can take funds before the maturity date of the bond. Convertible bonds are mixture debt that can be used for stock. And can’t be used until maturity date. 19. Valentine Zukovsky says that liquidity and solvency is the same thing. Is he correct? If not, how do they differ? No they are not the same thing. Liquidity means you have a year to pay with solvency you can pay when ever. BE10-1 Kananga Company has these obligations at December 31: A note payable for $100,000 due in 2 years. That would be long term Liability. A 10-year mortgage payable of $200,000 payable in ten $20,000 annual payments. This is liquidity for the 20,00 due in a year. Interest payable of $15,000 on the mortgage. Current asset Accounts payable...
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...|Held-to-maturity securities| ____ 2. When an investor uses the cost method to account for investments in common stock, cash dividends received by the investor from the investee should normally be recorded as a.|a deduction from the investment account.| b.|dividend revenue.| c.|an addition to the investor's share of the investee's profit.| d.|a deduction from the investor's share of the investee's profit.| ____ 3. A debit balance in the account Market Adjustment-Trading Securities at the end of a year should be interpreted as a.|the net realized holding gain to date.| b.|the net unrealized holding gain to date.| c.|the net realized holding gain for that year.| d.|the net unrealized holding gain for that year.| ____ 4. If the combined market value of trading securities at the end of the year is less than the market value of the same portfolio of trading securities at the beginning of the year, the difference should be accounted for by a.|reporting an unrealized loss in security investments in the stockholders' equity section of the balance sheet.| b.|reporting an unrealized loss in security investments in the income statement.| c.|a footnote to the financial statements.| d.|a credit to Investment in Trading Securities.| ____ 5. When an investor uses the equity method to account for investments in common stock, cash dividends received by the investor from the investee should be recorded as a.|an increase in the investment...
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...Table of Contents | | Page | | Chapter 1 | | 1.0 | Introduction | | 1.1 | The background of dividend reinvestment plans in Malaysia | | 1.2 | Discussion on relevant issues | | 1.3 | Problem statement | | 1.4 | Objectives | | 1.5 | Significance of the study | | 1.6 | Scope of the study | | | | | | Chapter 2 | | 2.0 | Introduction/ An Overview | | 2.1 | Theoretical Framework of DRIP in Investors’ Point of View | | 2.2 | Theoretical Framework of DRIP in Investees’ Point of View | | 2.3 | Concluding Remarks | | | | | | Chapter 3 | | 3.0 | Introduction | | 3.1 | Data Description | | 3.2 | Theoretical Framework | | 3.3 | Empirical Model of the study | | 3.4 | Methods to be Used | | 3.5 | Concluding Remarks | | | | | | References | | | | | 1.0 Introduction: Dividend Reinvestment Plan (DRIP) is an equity investment option that allows shareholders’ dividends directly purchase shares of common stock of the paying corporation instead of receiving cash dividends without going via a stock broker. There are three different types of DRIP which are open-market DRIP, new-issue DRIP and combination of open-market and new-issue DRIPs. Open-market DRIP is where the firmuse reinvested dividends to buy its outstanding shares in the open market to satisfy the needs of participating shareholders. New-issue DRIP is where the firm raises capital by selling their authorized but unissued shares or treasury stock...
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...Synopsis and Objectives Other cases in which dividend policy is an important issue: “Deutsche Brauerei,” (Case 11) In mid September 2005, Ashley Swenson, the chief financial officer (CFO) of a large computer-aided design and computer-aided manufacturing (CAD/CAM) equipment manufacturer needed to decide whether to pay out dividends to the firm’s shareholders, or to repurchase stock. If Swenson chose to pay out dividends, she would have to also decide upon the magnitude of the payout. A subsidiary question is whether the firm should embark on a campaign of corporate-image advertising, and change its corporate name to reflect its new outlook. The case serves as an omnibus review of the many practical aspects of the dividend and share buyback decisions, including (1) signaling effects, (2) clientele effects, and (3) the finance and investment implications of increasing dividend payouts and share repurchase decisions. This case can follow a treatment of the Miller-Modigliani dividend-irrelevance theorem and serves to highlight practical considerations to consider when setting a firm’s dividend policy. Suggested Questions for Advance Assignment to Students The instructor could assign supplemental reading on dividend policy and share repurchases. Especially recommended are the Asquith and Mullins article on equity signaling, and articles by Stern Stewart on financial communication. 1. In theory, to fund an increased dividend payout or a stock buyback, a firm might invest...
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...should give back to its investors or not. Haveloche is constantly faced with the predicament of deciding what dividend policy is best for the organization and the investors. The company’s CEO listed the stock prices and dividends for us to take a look at, so let us do just that. Below are the two scatter plots created from the information given in the case. The first scatter plot charts the dividend and the stock price. As you can see from the scatter plot, there is no obvious correlation between the two. The dividend does not necessarily move in the same direction or the opposite direction of the stock price. The second scatter plot charts the change in the stock price with the dividend. As you can also see with this scatter plot, there is no real correlation between these two. There are 3 theories of investor preference for dividend versus capital gains: (1) Dividend Irrelevance Theory or Modigliani Miller (2) “Bird-in-the-hand” Theory (3) Tax Preference Theory. According to Modigliani Miller (MM), the dividend policy has not effect on the stock price of the firm or the cost of capital. This theory states that investors reinvest the dividends back into the firm and the firm’s value is only based on the income produced from its assets, and not the dividends and retained earnings. According to the second theory, the “Bird-in-the-hand” theory, dividends are known and stable and...
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