k CASE 33: CALIFORNIA PIZZA KITCHEN INTRODUCTION California Pizza Kitchen (CPK) is a restaurants services company that operates a casual dining chain, with a particular focus on the premium pizza segment. The company is headquartered in Los Angeles, California and employs 14,800 people as on December 30th, 2007. The company recorded revenues of $633 million during the fiscal year ended December 2007, an increase of 14.1% over 2006. The increase in revenue was driven from its full service restaurants
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has a very conservative practices regarding taking debt. It only took debt twice in its entire history. An investment banker prompted the idea of repurchasing some of the company’s stocks to the CEO Mr. Dubinki. The CEO is not sure whether the repurchase will benefit the company or not. Problems with Blain current capital structure The main problems that I have noticed in Blain’s capital structure are * Heavy reliance on equity. * Zero debt * Surplus of cash Even though there
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to ensure they remain profitable, as well as to increase profits, into the future. “Suncor continued to return cash to shareholders through dividends and share repurchases. The company repurchased $408 million of its common shares in the fourth quarter of 2012, and returned more than $2.0 billion to shareholders through share repurchases and dividends in 2012.” (1) With this much value on their returns it seems as if Suncor’s approach is working, the resource-based approach is adding value to
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that analysts’ recommendations trigger changes in strategic investments during periods of uncertain technological change. We also find that firms that make high investments despite negative analysts’ recommendations announce a higher value of share repurchases, an action that may offset the growing illegitimacy of these increased investments by signaling alignment with shareholders’ interests. Radical technological changes provide a source of exogenous variation that contributes to explanation of how
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solution SOLUTIONS TO EXERCISES AND CASES For FINANCIAL STATEMENT ANALYSIS AND SECURITY VALUATION Stephen H. Penman Fifth Edition CHAPTER ONE Introduction to Investing and Valuation Concept Questions C1.1. Fundamental risk arises from the inherent risk in the business – from sales revenue falling or expenses rising unexpectedly, for example. Price risk is the risk of prices deviating from fundamental value. Prices
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Stock split - the issuance of a number of new shares in exchange for each old share held by a stockholder in order to lower the stock price to a more desirable trading level. c. Reverse stock split - the issuance of one new share in exchange for a number of old shares held by a stockholder in order to raise the stock price to a more desirable trading level. d. Stock dividend - a dividend to stockholders in the form of additional shares of stock instead of cash. e. Book
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preference over common stock of the company assets if it liquidates. Preferred stock has a fixed rate and usually not expiration. The investor gets priority. 3. What are the different types of dividends corporations may issue? When should a corporation pay dividends? Do you prefer a stock dividend or a cash dividend? Why? - Corporations offer cash, property, scrip (a promissory note to pay cash), or stock. - It depends if it becomes a target of high acquisition. If you want to have less money on
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Investor →CF(A)=CF(B)+CF(S) 一、 CF(A)=Operating Cash flow (OCF)-CAPEX-△NWC 1) OCF（看income statement）=EBIT + Depreciation -Tax paid EBIT=Revenue-Cost-Depreciation Tax=(EBIT-interest)*tax rate Earnings per share=Net income/total share outdating’s Dividends per share=Dividend/ total share outdating’s 2) CAPEX定义：Acquisitions-Sales of fixed assets 是out flow 需被finance CAPEX=△Total fixed assets+△accumulated depreciation=△PPE+△intangibles 3) △NWC=NWCend-NWCbeg financed by firm，是cash outflow长期
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the market continues to show signs of improvement. The company has shown steady growth in the last year and revenues are estimated to increase 19% over FY 2002. Based on this estimate, FY 2003 net income will hit $222.7 million ($0.71 earnings per share); a 12.6% growth from the previous year. Operating cash flow; while lower than 2000 and 2001 has shown a modest increase since 2002 and continues to be positive due to the company’s variable cost structure. This is in-part is due to more efficient
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common shares is Merck authorized to issue as of 12/31/11? Merck authorized 6,500,000,000 shares. 2. How many of its common shares has Merck actually issued as of 12/31/11? Merck issued 3,576,948,356 shares. 3. How many of its common shares does Merck hold in its treasury as of 12/31/11? 536,109,713 shares 4. How many of Merck’s common shares are outstanding as of 12/31/11? 3,040,838,643 shares 5. How many of its shares did it repurchase during
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