managing director at Hudson Bancorp which is the largest printer of paper checks in the United States of America. The company is experiencing with long-term debts, and it had been 10 years that the company had not issued any major bonds. In addition to this, the company had been through severe program on repurchasing of shares. This kind of policy had been proven successful as the share repurchasing had been appreciated by the investors and company’s stock price had reached the highest level in the
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www.sciedu.ca/ijfr International Journal of Financial Research Vol. 5, No. 1; 2014 Shareholders’ Wealth and Debt- Equity Mix of Quoted Companies in Nigeria Amos O. Arowoshegbe1 & Francis Kehinde Emeni2 1 Department of Accounting, Ambrose Alli University, Ekpoma, Edo State, Nigeria 2 Department of Accounting, University of Benin, Benin City, Edo State, Nigeria Correspondence: Amos O. Arowoshegbe Ph.D; ACA., Department of Accounting, Ambrose Alli University, Ekpoma, Edo State, Nigeria. Tel:
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the difficult decision of determining what is the best for the family company. The following questions will address what decision is the optimal and why it is beneficial for BKI. * Do you believe Blaine’s current capital structure and payout policies are appropriate? Why or why not? The main dilemma in the case is whether Blaine Kitchenware’s should choose to repurchase its own shares or not. If Blaine’s Kitchenware does repurchase its shares, they must consider whether to partially repurchase
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Ethics and Compliance Paper FIN/370 FINANCE FOR BUSINESS Dr. Terry Dowdy Univ. of Phoenix Leslie Morris Mauney, Derek Mazon, Stephanie Landry, Victoria Wilbert, Donna Spoljarick, Tihesha Horton Ethics and Compliance Paper Microsoft In today’s fast pace society corporate America seems to be above scrutiny. The time of the watch dog presence seems to have become lack and almost non existent. Giant corporations offer extremely
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cash to facilitate the materialization of 15% growth rate for the sake of maximizing the shareholders’ wealth. Firstly, Campbell needs to compare the market values of the firm and the equity impacted by the alternatives to raise money, e.g., issue debt or issue stock, under the circumstances of the above five dividend options respectively. Here, the amount of money in need can be
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uneasiness. If successful, it had the potential of enhancing Marriott's EPS and of increasing family and management control from 20% to 29% of outstanding shares. However, it represented a move that was almost entirely financial—one that would run the debt well above the levels advocated before the Board of Directors only two years earlier. The repurchase would also necessitate renegotiation of restrictive covenants in existing loan agreements. Lastly, the huge size of the proposed program would require
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pro forma income statements and balance sheets. Since different income statement and balance sheet items grow at different rates, in order for a balance sheet to balance, firms look to outside funding to fill the balance sheet gaps, such as future debt financing, equity issues, dividend payout rates (Froot & Stein, 1998). As in cash flow preparation, the financial plan will have a forecast balance sheet, a forecast income statement, and a forecast sources-and-uses-of-cash statement. These are
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Economic Association Stable URL: http://www.jstor.org/stable/1809766 Accessed: 10/09/2009 09:51 Your use of the JSTOR archive indicates your acceptance of JSTOR's Terms and Conditions of Use, available at http://www.jstor.org/page/info/about/policies/terms.jsp. JSTOR's Terms and Conditions of Use provides, in part, that unless you have obtained prior permission, you may not download an entire issue of a journal or multiple copies of articles, and you may use content in the JSTOR archive only
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willing to vary, and which elements remain fixed as a matter of the company’s policy? 2. What happens to Gainesboro’s financing need and unused debt capacity if: a. no dividends are paid? b. a 20% payout is pursued? c. a 40% payout is pursued? d. a residual payout policy is pursued? Note that case Exhibit 8 presents an estimate of the amount of borrowing needed. Assume that maximum debt capacity is, as a matter of policy, 40% of the book value of equity. 3. How might Gainesboro’s various providers
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liberal credit and inventory policies. The objectives of the case are to: • Introduce and exercise tools and concepts of financial-statement analysis (including financial ratios, break-even analysis, and cash-flow statements). • Explore possible definitions of the “financial health” of a company. • Illustrate the linkage between operating policies and financial performance. • Consider the interdependence among corporate objectives regarding growth, dividends, and debt financing. • Explore the
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