Chap 20 - Inflation also has an impact on divident policy. -firm needs more sources of funds to finance the replacement of worn-out assets. -replacement is not same as expansion of firm's operations. -inflation means that the firm will have ti spend more to maintain its current operations. -source of funds : retention of earnigs. - no unique divident policy that all firms follow. - reasons : saving brokerage commission - prefer cash to capital gains. - other reasons: deferring capital
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[chap.6, 7] 4. debt, equity and lease financing issues [chap. 14, 20, 21] 5. risk defined and measured in a CAPM setting [chap. 10, 11] 6. variations in the calculation of cost of capital [chap. 13, 18] 7. capital structure and dividend policy decisions [chap. 15, 16, 17, 19] Suggested Other Courses: FIN 644 concerns of short-term financial planning and financing FIN 625 concerns of risk management with derivative securities FIN 620 concerns of multinational financial
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issues coming before the board of directors the next day: (1) approval of the financial plan for 2001, (2) declaration of the quarterly dividend, and (3) adoption of an incentive compensation plan for the marketing manager. The task is to evaluate the past and prospective financial performance of the company and to critique its liberal credit and inventory policies. The objectives of the case are to: • Introduce and exercise tools and concepts of financial-statement analysis (including financial
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study helps us gain hands on knowledge in the Pharmaceuticals sector in Bangladesh. The study has enormous implication to develop the appropriate Pharmaceuticals policy, to incorporate the unique marketing policy and to build sustainable Pharmaceuticals service. The concerning authority can use the findings and recommendation for their policy making and organizational development purpose and improving tourist satisfaction. It will help them to introduce a new dimension of strategic
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Pages 3 - 5 Financial Statements Pages 5 - 10 Financial Statement Summary Pages 10 - 13 Stock Valuation Pages 13 – 17 Discounted Value of the Firm and Terminal Value Pages 17 - 18 Consideration for Dividend Policy Page 18 Summary Pages 18 - 19 References Pages 20 - 21 Appendices Pages 21 - 28 Financial Analysis of Mead Johnson Nutrition Company The purpose and objectives of this writing are to provide
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Introduction Bank introductions EXIM Bank (Export Import Bank of Bangladesh Limited) was incorporated on June2, 1999 as a private sector banking company under the company’s act 1994 and started its operations on August3, 1999. The bank has authorized capital of BDT 3.5 billion and a paid up capital of BDT 2.68. The bank is listed in both DSE and CSE. Company Details Business Operations -Sariah based Islami banking service Chairpersons-Md. Nazrul Islam Majumdar Directors-Md. Faiz Ullah
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needed to keep the company running. Earnings differs from cash flows. In the latter, you must add back non-cash expenses (Depr. And Amort.) and deduct investment expenses and changes in the net working capital. Retained Earnings = Net Income – Dividends Investment Appraisal Methods: Should we invest in all? How to choose between mutually exclusive projects. Investment Project Selection Criteria 1-NPV: Ra: reflects the risk of the project and can be assessed by looking into projects with
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Cash dividends is a distribution of cash to shareholders. For a corporation to pay a cash dividend, it must have all three of the following: 1. Enough retained earnings 2. Enough cash 3. A declaration of dividends On the declaration date, a company’s board of directors formally declares the cash dividend and announces it to shareholders. ● An entry is required to recognize the increase in cash dividends and the increase in the current liability dividends payable. Example: To
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Diageo plc A Harvard Business School Case Study Part I 1) Diageo plc is a conglomerate formed in 1997 through the merger of Grand Metropolitan plc and Guinness plc, two consumer product companies. Their goal was to become an industry leader by achieving cost savings through marketing synergies, cutting overhead expenses, and developing production and purchasing efficiencies. Although diversified within the packaged food, beverage alcohol, and fast food industries, Diageo sought to focus exclusively
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1. In theory, to fund an increased dividend payout or a stock buyback, a firm might invest less, borrow more, or issue more stock. Which of those three elements is Gainesboro’s management 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
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