The role of the financial manager has in maximizing shareholders value is key to the achieving the goals of the shareholders. The financial manager performs double duty working toward achieving profits for the company and optimizing the shareholders value. The flexibility of having the ability to hear viewpoints from different angles to achieve the goals of both the shareholders and the company’s manager. Today’s financial manager must have the skills and strength to evaluate and assess risks
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* Explain the implications of the company's new ownership structure and shareholder expectations. * The major implication in this case is that now 17% is owned by shareholders and 8% is owned by employees and consultants of the company. Shareholders expect Alibaba to continue to strive to be competitively strong and maximize returns. * Describe how important a rapidly expanding domestic market is in Alibaba.com's strategic assessment. * Alibaba believed that it had certain competitive
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the person for whose benefit the fiduciary acts. In other words, a fiduciary’s powers are exercised on behalf of others who are being in a position of dependence. In this case, directors of Delima Enterprise Sdn Bhd have fiduciary duties to the shareholders and stakeholders of the company. In addition, they also control property in which others have an interest. According to Section 132(1) of Companies Act 1965, a director shall at all times act honestly and use reasonable diligence in the discharge
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Roche’s case analysis questions 1. Why is Roche seeking to acquire 44% of Genentech it does not own? From Roche’s point of view, what are the advantages of owing 100% of Genentech? What are the risks? Answer 1: The following are the advantages for Roche which will accrue by owning 100% of Genentech: * Genentech in the current form had become an important part of Roche’s business, accounting for 24% of Roche’s pharmaceutical product sales in 2008. Several of Genentech’s pioneering products
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Earnings per share, dividends, and shareholders’ equity all fuelled by increase in net income will become critically important to the company and its shareholders in this coming year. Increase in net income would in turn strengthen the shareholders’ equity, earnings per share and dividends, and this would discourage buying shares by those considering a hostile takeover. Trudi Lauf as a proponent of reducing leverage on the balance sheet and understanding the shareholders anxiety should lead the way of
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were involved and their relationship to Gallop as at the time the pre-announcement trade was made. VP Marketing Officers have a fiduciary obligation of loyalty and care to the corporate shareholders. VP is an insider Director Directors have a fiduciary obligation of loyalty and care to the corporate shareholders. Director is an insider Outside Counsel Are also considered insiders with a duty to the company. Collin As agents or servants of a corporation, employees have a duty of loyalty. Collin
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organizations business transactions has to be accounted for, management has one of two choices: either pay a cash dividend to their shareholders or retain the earnings to reinvest in the business. Once management makes the decision to retain earnings the earnings have to be accounted for on the balance sheet under shareholder equity. This entry into shareholder equity allows the shareholder to see the historical record of the retained earnings over the life of the business. Retained earnings can be negative,
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shares, and how many are existing shares being sold by current shareholders? -421,233,615 3. Describe the classes of shares, and the voting rights the shares will have. * Shares of Class A common stock are entitled to one vote per share. * Shares of Class B common stock are entitled to ten votes per share 4. Which class of stockholders will hold control of the company? -Class B 5. Does any one shareholder have control of the company? If so…who? -A dual class common
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Need Answer Sheet of this Question paper, contact aravind.banakar@gmail.com www.mbacasestudyanswers.com ARAVIND – 09901366442 – 09902787224 ACCOUNTS CASE STUDIES Q1) Advice to BPLT Ltd about the treatment of the following in the final statement of accounts for the year ended on 31st March 2002. A claim lodged with the railways in March 1999 for loss of goods of Rs 2,00,000 had been passed for payment in March 2002 for Rs 1,50,000. No entry
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surplus cash including takeover threat and inappropriate payout structure. Blaine Kitchenware’s current capital structure and payout policies are inappropriate for the following reasons. Blaine is currently over-liquid and under-levered and the shareholders are not maximizing their values as a result. Blaine is entirely financed by equity and none by debt, so there is no cash shield. The surplus of cash lowers the return on equity and increases the cost of capital. The large amount of cash will
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