surplus cash including takeover threat and inappropriate payout structure. Blaine Kitchenware’s current capital structure and payout policies are inappropriate for the following reasons. Blaine is currently over-liquid and under-levered and the shareholders are not maximizing their values as a result. Blaine is entirely financed by equity and none by debt, so there is no cash shield. The surplus of cash lowers the return on equity and increases the cost of capital. The large amount of cash will
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of the New Zealand Dairy Industry. On the 25th June 2012, farmer shareholders in the Co-Op Fonterra, voted in favour of implementing TAF. TAF allows outside capital in the form of buying units; in return for rights to dividends, but not ownership or votes. When researched; there is no agricultural co-op in the world that has taken outside capital and still primarily focused on maximising returns to the supplying shareholders, (ourco-op.co.nz) as primary focus becomes the share price and dividend
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1991) Low Power /Low interest * Customers /Members of OneLife The customers of OneLife, although being the most important aspect of the business due to the revenue they provide, with regards to the take-over would have little effect on the situation. If the company name and image were to be maintained then the customers influence will be minimal as business would continue to operate in the same way, unless the new company decide to change any of the fundamental policies or prices in the membership
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The case of Crown Insurance Services brings to the light the many issues now associated with the changing business environment, the questions that arise whether current existing law regrading residence and source is no longer fitting and whether its application may be conducive for cases where misappropriation is intentional. This paper considers some of the questionable reasoning used today by the courts in determining residence and source on companies incorporated overseas. The case of Crown
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banking source. The merger will make HDFC Bank the country’s seventh largest bank after Bank of India (BoI) and ahead of IDBI Bank, from the current 10th position. The merger talks between the two banks began in January 2008 after the principal shareholders of CBoP – Bank Muscat with 14.02 per cent stake, Sabre Capital with 3.48 per cent stake and Kephinance Investment (Mauritius) with 6.13 per cent — decided to exit. 1) HDFC Bank Board on 25th February 2008 approved the acquisition of Centurion
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Romano (2006) 353 B.R. 738; 2006 Bankr. LEXIS 2953 Key Facts: a) Kevin J. Farley ("Farley") was a certified public who employed in Allstate and ultimately became a fifty-percent shareholder of Allstate Carting, Inc. b) The Debtor/Defendant, Phillip A. Romano was the President and other fifty-percent shareholder of Allstate. c) While engaged as a consultant, Farley became aware of the Romanos' practice of writing checks for personal expenses out of the company account. d) Allstate
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successful business that you have studied. Apart from ‘employees’, identify two other stakeholders and explain their interest in this business. [4 marks] i. name of business ii. Stakeholder 1 iii. Explanation 1 iv. Stakeholder 2 v. Explanation 2 c) Using the business you identified in (b) to answer this question, assess a conflict that has occurred between two different stakeholder groups. Evaluate the consequences to your chosen business of not listening
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Vega Food Company Executive Brief The Vega Food Company was a Spanish meat-processing business that produced hams, sausages, and other delicacies for domestic and export markets. The $100 million company, owned and managed by the Valle family, had a Randall reputation for quality products in the marketplace. Francisco Jr., 45, had worked with his father Francisco Valle since 1976 and became president in March 1994, when his 72-year-old father was killed in an automobile accident. Francisco Valle
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of stakeholder orientation versus shareholder orientation, and the level of cultural secrecy on individuals’ perceptions of earnings management practices. Examining perceptions from 1,260 participants from 13 countries indicates that individuals from stakeholder-oriented institutional backgrounds were less accepting of earnings management, including both accounting earnings management and operating earnings management activities, than participants from shareholder-oriented institutional backgrounds
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earned capital Paid-in capital represents the amount of funding the owners of a company have invested. For example, if two partners contribute $60,000 to their new company, the company has $120,000 of paid-in capital. Business owners can contribute more capital to the business over time and can withdraw capital. Companies separate ledgers for each owner’s share of paid-in capital, some owners may contribute more or take away capital than other owners. Paid-in capital is not a true expression of
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