Sonia Zahid Case 43 October 28, 2015 American Greetings Should American Greetings Repurchase its Shares? 1. Is 3.5x multiple appropriate for American Greetings? If not, what multiple of EBITDA to think is justified? Based on the information provided, I believe that the EBITDA Multiple of 3.5x is not justified. EBITDA Mutiple (or EV/EBITDA) is a better measure than P/E ratio because it is not affected by the changes in capital structure between debt and equity. And for this reason it also makes fair
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Usually the investors appoint professional investment managers, to manage their funds. The same objective is achieved when professional investment managers create a ‘product’ and offer it for investments to the investors. The product represents a share in the pool and pre states investment objectives. FEATURES AND CHARACTERISTICS OF MUTUAL FUND A mutual fund is a financial intermediary and works as an investment company. It has distinct features and characteristics which differentiate
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What is the dividend rate? How many shares are issued and outstanding? AutoNation has 5 million shares of preferred stock authorized, none issued. There were no dividends on the preferred stock. 5. How many shares of common stock are authorized, issued and outstanding at the end of 2009? At the end of 2009 there were 1.5 billion shares authorized, 193,562,149 were issued and outstanding. 6. Refer to the statement of shareholder’s equity. Did the company declare any dividends in 2009? If
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CHAPTER-1 INTRODUCTION OF THE STUDY Background of the study: Mutual fund industry in India attaining maturity Even though the capital market attracts people there are several problems associated with it. While investing directly in to capital market one to be careful to judge the valuation of the stock and understand the complexities involved in the stock price fluctuations. So, a person with moderate knowledge of capital market generally prefers to invest
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Swedish Match Case 1. The company will save 4.5%×4,000,000,000×28%= SEK 50,400,000 annually. We assume the debt Swedish Match issues is a 10-year maturity coupon bond as the average BBB corporate bond (the CFO believes Swedish Match will receive a BBB+ rating) with the yield closest to that of Swedish Match’s debt is the 10-year maturity. Moreover, we do not assume that this debt will be refinanced into perpetuity because the financing decisions of Swedish Match are clearly dynamic - the board
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company's financial statements and evaluate its condition base on this. They should compare the company’s financial ratios relative to their competitors. Some of the main items used in valuing a company’s performances are: sales, earnings per share, dividends, current assets, current liabilities, and long-term debt. By using these items they can determine the company’s financial ratios to value the company’s health relative to their competitors. A company can benefit from tax advantages by incorporating
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Agency Problems and Dividend Policies Around the World Rafael La Porta, Florencio Lopez-de-Silanes, Andrei Shleifer and Robert W. Vishny* January 1999 Abstract This paper outlines and tests two agency models of dividends. According to the “outcome” model, dividends are the result of effective pressure by minority shareholders to force corporate insiders to disgorge cash. According to the “substitute” model, insiders interested in issuing equity in the future choose to pay dividends to establish a
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Agency Problems and Dividend Policies Around the World Rafael La Porta, Florencio Lopez-de-Silanes, Andrei Shleifer and Robert W. Vishny* January 1999 Abstract This paper outlines and tests two agency models of dividends. According to the “outcome” model, dividends are the result of effective pressure by minority shareholders to force corporate insiders to disgorge cash. According to the “substitute” model, insiders interested in issuing equity in the future choose to pay dividends to establish a
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………………………………………….…………………...11 Sustainable Growth Rate………...………………………………………………………....13 Additional Funds Needed…………………………………………………………………...13 Cost of Capital……………………………………………………………………………….14 WACC………………………………………………………………………………………..14 Dividends and Stock Policies………………………………………………………………….15 Objectives of Business Corporations 16 Working Capital Management: 19 Cash and Marketable Securities Management: 21 Accounts Receivable Management…………………………………………………………….26 Financing
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The company I am analyzing is the Home Shopping Network, Inc. The trade symbol on Nasdaq is HSNI. They are a $3.4 billion distributor in the retail industry sector. They are different in their distribution of goods to the consumer, in an efficient innovative manner. HSNI has several operating risk, according to an article by HSNI, “; risks associated with possible systems failures and/or security breaches, including any breach that results in the theft, transfer or unauthorized access or
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