. Tom believes the company should use the extra cash to pay a special one-time dividend. How will this proposal affect the stock price? How will it affect the value of the company? Electronic Timing, Inc. (ETI) needs to be careful on how it dispenses the extra cash as a dividend. Issuing the extra cash as a dividend would mean that the shareholders collectively will probably drop by the same amount because of the transfer of wealth from the company to the shareholders individually. Hence, the economic
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especially the FHP, 1988 paper. They used the same sample used in research done by Fazzari, Hubbard, and Petersen (FHP, 1988). But they only took the firms from Class 1 in FHP research which is manufacturing firms and classified as low dividend firms with dividend payout ratio with value below 10%, where they believe to be firms with an abnormally high investment-cash flow sensitivity (Kaplan & Zingales, 1997). The reasons why Kaplan and Zingales chose Class 1 firms as their sample are because
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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 last 10 years. However, Lawrence J. Mosner, the chair and the chief executive officer of the
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government, unions, investors, and creditors. * Accounting standards setters must take into consideration of detrimental consequences when deciding on accounting questions. Until recently, accounting policy making was deemed neutral in effect or was considered not responsible. Policy makers have been aware since 1960s that there was a third party intervention issues but not the Economic Consequences argument till 1970s When management began intervening, its true position was probably disguised
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* case of one entity investing in another entity through the acquisition of share capital Significant influence * power to participate in the financial and operating policy decisions of the investee but not control or joint control over those policies Control * power to govern the financial and operating policies of an entity so as to obtain benefits from its activities Associate * an entity, including an unincorporated entity such as a partnership, over which the investor has significant
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Security Policy for McBride Financial Services Introduction to Information Systems Security Management CMGT 441 December 06, 2011 Security Policy for McBride Financial Services The following document was developed to respond to a request by McBride Financial Services for a security policy based perceived needs associated within the loan department and issues in implementing online loan applications (OLA). The security policy will address the current need along with any issues that may
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directors * Interco transaction and relationship * Who own the other shares * Any debt financing intermingled * Sharing technology and patent * Participation in policy making process Investor need to disclose share of investment income, * Also disc, opns * Error correction * Acct policy changes, * Capital transaction included amount in OCI Have influence or not : 20% Users and objectives 1. Public shareholder: a. investors are interested in
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included below). These targets will then be formalised by an organisation and specific policies will be formulated through planning and implementation to promote the achievement of goals and objectives. Objectives may include: Growth maximization to increase their market coverage Sales Policy Sell to anyone who is credit worthy Social Obligations Providing work for the local economy Inward investment policy employing the services of all the local firms Candidates should promote the concept
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Accounting Theory Learning Objectives Definition of theory and accounting theory The needs, purposes & benefits of AT Inductive & deductive approach to construct theory Descriptive, decision usefulness & welfare approaches to the construction of AT Structure of AT Relationship between AT & AP 1 Accounting Theory Defined as: A set of broad principles that provides a general frame of reference by which accounting practice can be evaluated and guides development of new practices and procedures. (Hendrickson
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following assumptions: 1. There are no corporate taxes (this assumption has been removed later). 2. The firms use only 2 sources of financing namely perpetual debts ad equity shares 3. The firms pay 100% of the earnings as dividend. This means that the dividend pay-out ratio is 100% and there are no earnings that are retained by the firms. 4. The total assets are given which do not change and the investment decisions are assumed to be constant. 5. Business risk is constant over
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